Domino’s Pizza Inc. (DPZ) Upgraded to “Buy” by 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 target price points to a potential upside of 11.83% from the stock’s previous close.
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 analysts have also commented on DPZ. TheStreet raised Domino’s Pizza from a “hold” rating to a “buy” rating in a report on Monday, July 25th. Nomura lowered Domino’s Pizza from a “buy” rating to a “neutral” rating and set a $135.00 price objective for the company. in a report on Wednesday, June 22nd. Maxim Group boosted their price objective on Domino’s Pizza from $127.00 to $135.00 and gave the stock a “hold” rating in a report on Friday, July 22nd. Citigroup Inc. boosted their price objective on Domino’s Pizza from $137.00 to $159.00 and gave the stock a “neutral” rating in a report on Tuesday, September 13th. Finally, Beaufort Securities reissued a “buy” rating on shares of Domino’s Pizza in a report on Sunday, July 31st. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and ten have given a buy rating to the company. Domino’s Pizza 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) traded up 1.20% during midday trading on Monday, hitting $152.94. The company’s stock had a trading volume of 54,859 shares. The company has a 50-day moving average price of $151.10 and a 200 day moving average price of $137.51. Domino’s Pizza has a 1-year low of $100.59 and a 1-year high of $155.10. The company has a market cap of $7.38 billion, a P/E ratio of 41.17 and a beta of 0.81.
Domino’s Pizza (NYSE:DPZ) last issued its quarterly earnings data on Thursday, July 21st. The company reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.04. The firm earned $547.34 million during the quarter, compared to analyst estimates of $533.44 million. Domino’s Pizza had a negative return on equity of 11.59% and a net margin of 8.45%. The company’s revenue for the quarter was up 12.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.81 EPS. On average, equities research analysts predict that Domino’s Pizza will post $4.14 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were issued 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 currently 40.86%.
In related news, insider Richard E. Allison, Jr. sold 20,000 shares of the stock in a transaction on Friday, August 19th. The stock was sold at an average price of $146.92, for a total value of $2,938,400.00. Following the transaction, the insider now owns 42,080 shares of the company’s stock, valued at $6,182,393.60. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director James A. Goldman sold 3,095 shares of the stock in a transaction 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 directly owns 15,167 shares in the company, valued at approximately $2,239,559.22. The disclosure for this sale can be found here. 5.03% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DPZ. Capital Fund Management S.A. boosted its position in Domino’s Pizza by 717.7% in the second quarter. Capital Fund Management S.A. now owns 77,808 shares of the company’s stock worth $10,222,000 after buying an additional 68,292 shares in the last quarter. BlackRock Group LTD boosted 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 worth $15,089,000 after buying an additional 41,334 shares in the last quarter. Aperio Group LLC boosted 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 worth $1,445,000 after buying an additional 1,760 shares in the last quarter. Schonfeld Strategic Advisors LLC purchased a new position in Domino’s Pizza during the first quarter worth approximately $820,000. Finally, LPL Financial LLC boosted its position in Domino’s Pizza by 25.8% in the first quarter. LPL Financial LLC now owns 10,052 shares of the company’s stock worth $1,330,000 after buying an additional 2,062 shares in the last quarter. 95.55% of the stock is currently owned by institutional investors and hedge funds.
Domino’s Pizza Company Profile
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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