Domino’s Pizza Inc (DPZ) Lifted to “Buy” at 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 Friday. The firm currently has a $213.00 price target on the restaurant operator’s stock. Zacks Investment Research‘s price target suggests a potential upside of 12.09% 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. However, a soft consumer spending environment in the U.S. restaurants space might limit revenue growth. Higher costs and negative currency translation are likely to hurt profits too. Nevertheless, 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.”
A number of other research analysts also recently issued reports on the stock. Argus downgraded shares of Domino’s Pizza from a “buy” rating to a “hold” rating and boosted their price objective for the company from $145.00 to $183.30 in a research report on Friday, August 25th. Longbow Research raised shares of Domino’s Pizza from a “neutral” rating to a “buy” rating and set a $229.00 price objective on the stock in a research report on Friday, July 28th. Stephens raised shares of Domino’s Pizza from an “equal weight” rating to an “overweight” rating and reduced their price objective for the company from $210.00 to $185.00 in a research report on Wednesday, July 26th. Sanford C. Bernstein reissued a “market perform” rating and set a $215.00 price objective on shares of Domino’s Pizza in a research report on Tuesday, July 25th. Finally, BidaskClub downgraded shares of Domino’s Pizza from a “buy” rating to a “hold” rating in a research report on Monday, July 24th. Eleven equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Domino’s Pizza presently has an average rating of “Hold” and a consensus price target of $196.64.
Domino’s Pizza (NYSE DPZ) traded up 1.69% during midday trading on Friday, reaching $193.12. 694,511 shares of the company’s stock were exchanged. The company has a market cap of $9.32 billion, a price-to-earnings ratio of 38.38 and a beta of 0.36. The firm has a 50-day moving average price of $187.48 and a 200 day moving average price of $194.24. Domino’s Pizza has a 12-month low of $149.67 and a 12-month high of $221.58.
Domino’s Pizza (NYSE:DPZ) last issued its quarterly earnings data on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.23 by $0.09. The business had revenue of $628.61 million for the quarter, compared to the consensus estimate of $609.87 million. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The company’s quarterly revenue was up 14.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.98 EPS. On average, analysts expect that Domino’s Pizza will post $5.69 EPS for the current fiscal year.
Domino’s Pizza announced that its Board of Directors has approved a stock buyback plan on Wednesday, August 2nd that permits the company to buyback $1.25 billion in outstanding shares. This buyback authorization permits the restaurant operator to purchase up to 13.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.
A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. grew its position in Domino’s Pizza by 0.5% during the 2nd quarter. BlackRock Inc. now owns 5,369,812 shares of the restaurant operator’s stock valued at $1,135,876,000 after purchasing an additional 24,988 shares during the last quarter. Vanguard Group Inc. grew its position in Domino’s Pizza by 8.5% during the 2nd quarter. Vanguard Group Inc. now owns 4,164,927 shares of the restaurant operator’s stock valued at $881,007,000 after purchasing an additional 327,585 shares during the last quarter. Renaissance Technologies LLC grew its position in Domino’s Pizza by 43.7% during the 2nd quarter. Renaissance Technologies LLC now owns 3,060,900 shares of the restaurant operator’s stock valued at $647,472,000 after purchasing an additional 930,200 shares during the last quarter. State Street Corp grew its position in Domino’s Pizza by 1.1% during the 1st quarter. State Street Corp now owns 1,538,004 shares of the restaurant operator’s stock valued at $283,451,000 after purchasing an additional 16,726 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in Domino’s Pizza by 26.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 732,223 shares of the restaurant operator’s stock valued at $154,887,000 after purchasing an additional 154,417 shares during the last quarter. 94.33% of the stock is currently owned by institutional investors.
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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