Domino’s Pizza Inc (DPZ) Stock Rating Lowered by Zacks Investment Research
Domino’s Pizza Inc (NYSE:DPZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
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.”
A number of other analysts also recently commented on DPZ. Wells Fargo & Company began coverage on Domino’s Pizza in a research report on Tuesday, May 23rd. They set a “market perform” rating and a $210.00 target price on the stock. Maxim Group boosted their price target on Domino’s Pizza from $186.00 to $200.00 and gave the stock a “hold” rating in a report on Thursday, June 1st. BTIG Research reissued a “buy” rating and issued a $233.00 price target (up from $213.00) on shares of Domino’s Pizza in a report on Thursday, June 1st. Longbow Research cut Domino’s Pizza from a “buy” rating to a “neutral” rating in a report on Friday, June 9th. Finally, Bank of America Corporation boosted their price target on Domino’s Pizza from $210.00 to $235.00 and gave the stock a “buy” rating in a report on Tuesday, June 13th. Thirteen research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $193.90.
Shares of Domino’s Pizza (NYSE DPZ) traded down 0.59% during mid-day trading on Tuesday, hitting $182.50. 745,811 shares of the stock were exchanged. The stock has a market cap of $8.81 billion, a PE ratio of 36.27 and a beta of 0.36. Domino’s Pizza has a 12 month low of $145.00 and a 12 month high of $221.58. The stock’s 50 day moving average is $192.00 and its 200-day moving average is $194.40.
Domino’s Pizza (NYSE:DPZ) last posted its quarterly earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.23 by $0.09. The firm had revenue of $628.61 million for the quarter, compared to the consensus estimate of $609.87 million. Domino’s Pizza had a negative return on equity of 13.28% and a net margin of 9.40%. The company’s revenue for the quarter was up 14.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.98 earnings per share. On average, analysts anticipate that Domino’s Pizza will post $5.69 EPS for the current year.
Domino’s Pizza announced that its Board of Directors has approved a stock buyback program on Wednesday, August 2nd that permits the company to buyback $1.25 billion in shares. This buyback authorization permits the restaurant operator to repurchase up to 13.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.
Large investors have recently made changes to their positions in the business. State of Wisconsin Investment Board increased its stake in Domino’s Pizza by 17.4% during the first quarter. State of Wisconsin Investment Board now owns 32,021 shares of the restaurant operator’s stock worth $5,901,000 after acquiring an additional 4,738 shares during the last quarter. Turner Investments LLC purchased a new stake in shares of Domino’s Pizza in the first quarter worth about $1,491,000. V Wealth Management LLC purchased a new stake in shares of Domino’s Pizza in the second quarter worth about $293,000. Sapphire Star Partners LP boosted its position in shares of Domino’s Pizza by 25.7% in the second quarter. Sapphire Star Partners LP now owns 1,759 shares of the restaurant operator’s stock worth $372,000 after buying an additional 360 shares during the period. Finally, Bedrijfstakpensioenfonds Voor DE Media PNO purchased a new stake in shares of Domino’s Pizza in the second quarter worth about $1,204,000. Institutional investors own 94.33% 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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