Domino’s Pizza Inc (NYSE:DPZ) Stock Rating Upgraded 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 research report issued on Thursday. The brokerage presently has a $217.00 target price on the restaurant operator’s stock. Zacks Investment Research‘s target price suggests a potential upside of 11.95% from the company’s previous close.
According to Zacks, “Domino's Pizza’s second-quarter 2017 adjusted earnings of $1.32 per share beat the Zacks Consensus Estimate by 8.2% and climbed 34.7% year over year (y/y) on strong sales and a lower share count. Revenues rose 14.8% y/y to $628.6 million and topped the consensus mark by 2.5%. In fact, the company has been posting positive comps in domestic and international markets over the last several quarters. However, strength in domestic markets was overshadowed by weak international comps growth, particularly in Europe, in this quarter. Nevertheless, initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help regain the momentum. In addition, the company’s shares outpaced the industry year to date. Yet, higher labor costs and expenses related to initiatives might dent margins. Also, soft consumer spending environment in the U.S. restaurants space and adverse forex translation remain concerns.”
Several other equities research analysts have also weighed in on the stock. Guggenheim initiated coverage on shares of Domino’s Pizza in a report on Friday, April 21st. They issued a “buy” rating and a $192.00 target price on the stock. Longbow Research lowered shares of Domino’s Pizza from a “buy” rating to a “neutral” rating in a report on Friday, June 9th. OTR Global reiterated a “positive” rating on shares of Domino’s Pizza in a report on Saturday, April 22nd. BidaskClub upgraded shares of Domino’s Pizza from a “buy” rating to a “strong-buy” rating in a report on Wednesday, July 12th. Finally, Jefferies Group LLC reiterated a “hold” rating and issued a $180.00 target price on shares of Domino’s Pizza in a report on Wednesday, April 12th. Eleven investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Domino’s Pizza currently has an average rating of “Hold” and a consensus target price of $195.38.
Domino’s Pizza (NYSE:DPZ) traded down 0.19% on Thursday, reaching $193.46. 233,957 shares of the company’s stock traded hands. Domino’s Pizza has a 52-week low of $143.47 and a 52-week high of $221.58. The firm’s 50 day moving average price is $204.95 and its 200 day moving average price is $193.17. The firm has a market capitalization of $9.34 billion, a PE ratio of 38.45 and a beta of 0.35.
Domino’s Pizza (NYSE:DPZ) last posted its earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.23 by $0.09. The company had revenue of $628.61 million for the quarter, compared to analyst estimates of $609.87 million. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The business’s revenue for the quarter was up 14.8% compared to the same quarter last year. During the same period last year, the business posted $0.98 earnings per share. On average, analysts predict that Domino’s Pizza will post $5.70 EPS for the current fiscal year.
Domino’s Pizza announced that its Board of Directors has approved a share repurchase plan on Wednesday, August 2nd that permits the company to repurchase $1.25 billion in shares. This repurchase authorization permits the restaurant operator to buy up to 13.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.
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A number of hedge funds have recently made changes to their positions in DPZ. Sigma Planning Corp purchased a new stake in shares of Domino’s Pizza during the first quarter worth approximately $218,000. Magee Thomson Investment Partners LLC purchased a new stake in shares of Domino’s Pizza during the first quarter worth approximately $5,131,000. Navellier & Associates Inc boosted its stake in shares of Domino’s Pizza by 5.6% in the first quarter. Navellier & Associates Inc now owns 29,620 shares of the restaurant operator’s stock worth $5,459,000 after buying an additional 1,558 shares in the last quarter. Retirement Systems of Alabama boosted its stake in shares of Domino’s Pizza by 5.3% in the first quarter. Retirement Systems of Alabama now owns 111,273 shares of the restaurant operator’s stock worth $20,508,000 after buying an additional 5,648 shares in the last quarter. Finally, State of Alaska Department of Revenue purchased a new stake in shares of Domino’s Pizza during the first quarter worth approximately $1,181,000. Hedge funds and other institutional investors own 98.55% of the company’s stock.
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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