Stock Repurchase Plan Declared by Domino’s Pizza (DPZ) Board
Domino’s Pizza (NYSE:DPZ) declared that its board has initiated a share buyback plan, which allows the company to repurchase $1.25 billion in outstanding shares on Wednesday, August 2nd, EventVestor reports. This repurchase authorization allows the restaurant operator to reacquire up to 13.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
DPZ has been the topic of a number of recent analyst reports. Zacks Investment Research upgraded Domino’s Pizza from a “hold” rating to a “buy” rating and set a $236.00 target price on the stock in a research report on Monday, June 19th. BidaskClub cut Domino’s Pizza from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, June 13th. Bank of America Corporation lifted their target price on Domino’s Pizza from $210.00 to $235.00 and gave the company a “buy” rating in a research report on Tuesday, June 13th. BTIG Research reiterated a “buy” rating and issued a $233.00 target price (up previously from $213.00) on shares of Domino’s Pizza in a research report on Thursday, June 1st. Finally, Guggenheim initiated coverage on Domino’s Pizza in a research report on Friday, April 21st. They issued a “buy” rating and a $192.00 target price on the stock. Twelve investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $196.56.
Domino’s Pizza (NYSE:DPZ) traded up 0.52% during trading on Monday, hitting $197.81. The company had a trading volume of 182,623 shares. The company’s 50 day moving average price is $207.84 and its 200-day moving average price is $192.31. The stock has a market capitalization of $9.55 billion, a price-to-earnings ratio of 39.31 and a beta of 0.35. Domino’s Pizza has a 1-year low of $143.47 and a 1-year high of $221.58.
Domino’s Pizza (NYSE:DPZ) last posted its quarterly earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.09. Domino’s Pizza had a negative return on equity of 13.28% and a net margin of 9.40%. The business had revenue of $628.61 million for the quarter, compared to analyst estimates of $609.87 million. During the same period last year, the company earned $0.98 EPS. Domino’s Pizza’s revenue for the quarter was up 14.8% compared to the same quarter last year. On average, analysts expect that Domino’s Pizza will post $5.65 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 15th will be given a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, September 14th. This represents a $1.84 annualized dividend and a yield of 0.94%. Domino’s Pizza’s payout ratio is 36.65%.
Domino’s Pizza Company Profile
Domino’s Pizza, Inc is a pizza restaurant chain company. As of January 1, 2017, the Company operated in over 13,800 locations in over 85 markets around the world. The Company operates through three segments: domestic stores, international franchise and supply chain. Its basic menu features pizza products in various sizes and crust types.
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