Domino’s Pizza Inc. (DPZ) Raised to Buy at Zacks Investment Research
Domino’s Pizza Inc. (NYSE:DPZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday. The brokerage presently has a $169.00 price objective on the stock. Zacks Investment Research’s price target would indicate a potential upside of 11.83% from the stock’s current price.
According to Zacks, “Domino's Pizza’s revenues have topped the Zacks Consensus Estimate in six of the last seven quarters. The second-quarter 2016 marked the 21st consecutive quarter of positive same-store-sales domestically and 90th quarter of positive comps in the international segment. Going forward, the company’s digital ordering system, focus on re-imaging and other sales initiatives are likely to help sustain the momentum. Further, the pizza category is a fast growing segment in the U.S. quick-service restaurant industry and Domino’s ranks as the second-largest pizza chain in the world. Its solid brand positioning will thus help boost sales in the upcoming quarters. Meanwhile, the company has mixed record of earnings surprises in recent quarters. Still, higher labor costs and expenses related to sales initiatives, soft consumer spending environment in the U.S. restaurant space and negative currency translation remain potent headwinds.”
A number of other equities research analysts have also recently commented on the stock. Bank of America Corp. upgraded shares of Domino’s Pizza from an “underperform” rating to a “buy” rating and raised their price target for the stock from $150.31 to $175.00 in a report on Friday. Beaufort Securities reiterated a “buy” rating on shares of Domino’s Pizza in a report on Thursday. Peel Hunt reiterated a “buy” rating on shares of Domino’s Pizza in a report on Thursday. N+1 Singer reiterated a “hold” rating on shares of Domino’s Pizza in a report on Wednesday, October 12th. Finally, Maxim Group lifted their price objective on shares of Domino’s Pizza from $135.00 to $158.00 and gave the company a “hold” rating in a report on Tuesday, October 4th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and ten have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $144.73.
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Shares of Domino’s Pizza (NYSE:DPZ) opened at 151.12 on Monday. The firm’s 50-day moving average is $151.10 and its 200 day moving average is $137.51. The company has a market capitalization of $7.29 billion, a PE ratio of 40.68 and a beta of 0.81. Domino’s Pizza has a 12 month low of $100.59 and a 12 month high of $155.10.
Domino’s Pizza (NYSE:DPZ) last posted its quarterly earnings results on Thursday, July 21st. The company reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.04. The business earned $547.34 million during the quarter, compared to analysts’ expectations of $533.44 million. Domino’s Pizza had a net margin of 8.45% and a negative return on equity of 11.59%. The business’s quarterly revenue was up 12.0% on a year-over-year basis. During the same period last year, the company posted $0.81 earnings per share. Equities research analysts predict that Domino’s Pizza will post $4.14 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were paid a $0.38 dividend. The ex-dividend date was Tuesday, September 13th. This represents a $1.52 annualized dividend and a dividend yield of 1.01%. Domino’s Pizza’s payout ratio is 40.86%.
In other news, Director James A. Goldman sold 3,095 shares of Domino’s Pizza stock in a transaction dated 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 $2,239,559.22. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Richard E. Allison, Jr. sold 20,000 shares of Domino’s Pizza stock in a transaction dated 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.
Institutional investors have recently bought and sold shares of the company. Aperio Group LLC increased its position in Domino’s Pizza by 19.1% in the first quarter. Aperio Group LLC now owns 10,960 shares of the company’s stock valued at $1,445,000 after buying an additional 1,760 shares during the last quarter. BlackRock Inc. increased its position in Domino’s Pizza by 55.4% in the first quarter. BlackRock Inc. now owns 67,434 shares of the company’s stock valued at $8,891,000 after buying an additional 24,035 shares during the last quarter. BlackRock Group LTD increased its position in Domino’s Pizza by 56.5% in the first quarter. BlackRock Group LTD now owns 114,427 shares of the company’s stock valued at $15,089,000 after buying an additional 41,334 shares during the last quarter. BlackRock Japan Co. Ltd acquired a new position in Domino’s Pizza during the first quarter valued at $111,000. Finally, JPMorgan Chase & Co. increased its position in Domino’s Pizza by 260.3% in the first quarter. JPMorgan Chase & Co. now owns 178,269 shares of the company’s stock valued at $23,507,000 after buying an additional 289,453 shares during the last quarter. Hedge funds and other institutional investors own 95.55% 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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