Zacks Investment Research Downgrades Domino’s Pizza Inc. (DPZ) to Sell
Domino’s Pizza Inc. (NYSE:DPZ) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Domino's Pizza has considerable international presence and is thus highly vulnerable to fluctuations in exchange rates. Despite the weakening of the U.S. dollar in the first half of 2016 compared to the prior year, currency headwinds are expected to keep profits under pressure. In fact, the company expects foreign currency to have an $8 million to $12 million year-over-year impact on pretax earnings in 2016. Moreover, higher labor costs and expenses related to sales initiatives are likely to remain headwinds. Nonetheless, the company has been posting positive comps over the past four quarters, and its digital ordering system, focus on re-imaging and other sales initiatives are expected to help it sustain the momentum. Meanwhile, the company has mixed record of earnings surprises in recent quarters. However, soft consumer spending environment in the U.S. restaurant space may dent sales.”
Several other brokerages also recently issued reports on DPZ. Citigroup Inc. raised their price target on Domino’s Pizza from $137.00 to $159.00 and gave the company a “neutral” rating in a research report on Tuesday, September 13th. Goldman Sachs Group Inc. reaffirmed a “buy” rating and issued a $139.00 price target on shares of Domino’s Pizza in a research report on Tuesday, July 19th. Numis Securities Ltd reaffirmed a “buy” rating on shares of Domino’s Pizza in a research report on Wednesday, July 20th. Nomura downgraded Domino’s Pizza from a “buy” rating to a “neutral” rating and set a $135.00 price target on the stock. in a research report on Wednesday, June 22nd. Finally, Beaufort Securities reaffirmed a “buy” rating on shares of Domino’s Pizza in a research report on Sunday, July 31st. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $139.96.
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Shares of Domino’s Pizza (NYSE:DPZ) traded up 0.2074% during mid-day trading on Tuesday, hitting $151.8243. The stock had a trading volume of 139,165 shares. The stock has a market cap of $7.33 billion, a price-to-earnings ratio of 40.8679 and a beta of 0.78. Domino’s Pizza has a one year low of $100.56 and a one year high of $152.78. The firm has a 50 day moving average of $148.12 and a 200 day moving average of $134.82.
Domino’s Pizza (NYSE:DPZ) last posted its earnings results on Thursday, July 21st. The company reported $0.98 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.94 by $0.04. Domino’s Pizza had a negative return on equity of 11.59% and a net margin of 8.45%. The company had revenue of $547.34 million for the quarter, compared to analyst estimates of $533.44 million. During the same period last year, the company earned $0.81 earnings per share. The business’s revenue was up 12.0% compared to the same quarter last year. On average, analysts forecast that Domino’s Pizza will post $4.14 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Thursday, September 15th will be paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.00%. The ex-dividend date is Tuesday, September 13th. Domino’s Pizza’s dividend payout ratio (DPR) is currently 40.86%.
In related news, Director James A. Goldman sold 3,095 shares of the business’s stock in a transaction that occurred on Monday, July 25th. The shares were sold at an average price of $147.66, for a total value of $457,007.70. Following the completion of the transaction, the director now owns 15,167 shares in the company, valued at approximately $2,239,559.22. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Richard E. Allison, Jr. sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, August 19th. The stock was sold at an average price of $146.92, for a total transaction of $2,938,400.00. Following the completion of the transaction, the insider now owns 42,080 shares of the company’s stock, valued at approximately $6,182,393.60. The disclosure for this sale can be found here. 5.03% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Capital World Investors boosted its position in Domino’s Pizza by 2.2% in the second quarter. Capital World Investors now owns 5,493,504 shares of the company’s stock valued at $721,737,000 after buying an additional 119,188 shares during the period. Vanguard Group Inc. boosted its position in Domino’s Pizza by 2.1% in the second quarter. Vanguard Group Inc. now owns 3,611,585 shares of the company’s stock valued at $474,489,000 after buying an additional 74,268 shares during the period. BlackRock Fund Advisors boosted its position in Domino’s Pizza by 5.3% in the second quarter. BlackRock Fund Advisors now owns 1,785,461 shares of the company’s stock valued at $234,574,000 after buying an additional 89,797 shares during the period. BlackRock Institutional Trust Company N.A. boosted its position in Domino’s Pizza by 5.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,593,162 shares of the company’s stock valued at $209,310,000 after buying an additional 77,122 shares during the period. Finally, State Street Corp boosted its position in Domino’s Pizza by 17.6% in the second quarter. State Street Corp now owns 1,583,984 shares of the company’s stock valued at $208,104,000 after buying an additional 237,447 shares during the period. Hedge funds and other institutional investors own 95.62% of the company’s stock.
About Domino’s Pizza
Domino’s Pizza, Inc is a pizza restaurant chain. The Company operates pizza stores at 12,500 locations in over 80 markets. It operates through three segments: domestic stores, international franchise and supply chain. Its Domestic Stores segment consists primarily of its franchise operations, through which it operates network of over 4,820 franchised stores located in the United States.
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