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 research note issued on Monday. The brokerage currently has a $204.00 price target on the restaurant operator’s stock. Zacks Investment Research‘s price objective points to a potential upside of 11.12% from the company’s current price.
According to Zacks, “Domino's shares have outpaced the industry year to date. The company’s solid brand positioning should continue to boost sales in the upcoming quarters. Also, efforts to accelerate its presence in high-growth international markets bode well. Notably, the company’s revenues and earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In fact, second-quarter 2017 marked the 25th and 94th consecutive quarter of positive same-store-sales domestically and internationally, respectively. Going forward, Domino's initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help sustain the momentum. Yet, higher costs and negative currency translation are likely to hurt profits. A soft consumer spending environment in the U.S. restaurants space might limit revenue growth too.”
DPZ has been the topic of a number of other research reports. Argus cut Domino’s Pizza from a “buy” rating to a “hold” rating and increased their target price for the company from $145.00 to $183.30 in a report on Friday, August 25th. Maxim Group increased their target price on Domino’s Pizza from $186.00 to $200.00 and gave the company a “hold” rating in a report on Thursday, June 1st. BidaskClub cut Domino’s Pizza from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 18th. Instinet reiterated a “neutral” rating and set a $198.00 target price (up previously from $196.00) on shares of Domino’s Pizza in a report on Saturday, July 22nd. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $215.00 target price on shares of Domino’s Pizza in a report on Tuesday, July 25th. Twelve equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $193.90.
Shares of Domino’s Pizza (DPZ) traded up 0.73% during mid-day trading on Monday, hitting $183.59. The stock had a trading volume of 708,045 shares. The stock has a 50 day moving average price of $192.48 and a 200-day moving average price of $194.21. Domino’s Pizza has a 52-week low of $145.00 and a 52-week high of $221.58. The company has a market cap of $8.86 billion, a PE ratio of 36.48 and a beta of 0.36.
Domino’s Pizza (NYSE:DPZ) last announced its earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.09. The firm had revenue of $628.61 million for the quarter, compared to analysts’ expectations of $609.87 million. Domino’s Pizza had a negative return on equity of 13.28% and a net margin of 9.40%. Domino’s Pizza’s quarterly revenue was up 14.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.98 EPS. On average, equities analysts expect that Domino’s Pizza will post $5.69 earnings per share for the current fiscal year.
Domino’s Pizza declared that its Board of Directors has authorized a share buyback plan on Wednesday, August 2nd that permits the company to repurchase $1.25 billion in outstanding shares. This repurchase authorization permits the restaurant operator to reacquire up to 13.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.
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A number of institutional investors have recently modified their holdings of DPZ. Janney Montgomery Scott LLC boosted its holdings in Domino’s Pizza by 259.5% in the first quarter. Janney Montgomery Scott LLC now owns 4,559 shares of the restaurant operator’s stock valued at $840,000 after acquiring an additional 3,291 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in Domino’s Pizza by 11.9% in the first quarter. Russell Investments Group Ltd. now owns 121,572 shares of the restaurant operator’s stock valued at $22,404,000 after acquiring an additional 12,949 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD boosted its holdings in Domino’s Pizza by 9.6% in the first quarter. Sumitomo Mitsui Asset Management Company LTD now owns 3,805 shares of the restaurant operator’s stock valued at $701,000 after acquiring an additional 332 shares during the last quarter. Wells Fargo & Company MN boosted its holdings in Domino’s Pizza by 215.1% in the first quarter. Wells Fargo & Company MN now owns 229,212 shares of the restaurant operator’s stock valued at $42,244,000 after acquiring an additional 156,480 shares during the last quarter. Finally, Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its holdings in Domino’s Pizza by 1.3% in the first quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 7,212 shares of the restaurant operator’s stock valued at $1,329,000 after acquiring an additional 93 shares during the last quarter. Hedge funds and other institutional investors own 94.33% of the company’s stock.
About Domino’s Pizza
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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