Domino’s Pizza Inc (DPZ) Downgraded 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 note issued to investors 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. 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.”
Other research analysts also recently issued research reports about the company. Argus downgraded Domino’s Pizza from a “buy” rating to a “hold” rating and boosted their target price for the company from $145.00 to $183.30 in a research note on Friday, August 25th. Maxim Group boosted their target price on Domino’s Pizza from $186.00 to $200.00 and gave the company a “hold” rating in a research note on Thursday, June 1st. BidaskClub downgraded Domino’s Pizza from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, July 18th. BTIG Research restated a “buy” rating and issued a $233.00 target price (up previously from $213.00) on shares of Domino’s Pizza in a research note on Thursday, June 1st. Finally, Sanford C. Bernstein restated a “market perform” rating and issued a $215.00 target price on shares of Domino’s Pizza in a research note on Tuesday, July 25th. Twelve research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $196.64.
Domino’s Pizza (DPZ) traded up 0.16% during mid-day trading on Tuesday, hitting $195.93. The company had a trading volume of 850,495 shares. The company’s 50 day moving average price is $188.18 and its 200-day moving average price is $194.43. Domino’s Pizza has a one year low of $149.67 and a one year high of $221.58. The company has a market cap of $9.45 billion, a PE ratio of 38.94 and a beta of 0.36.
Domino’s Pizza (NYSE:DPZ) last issued its quarterly earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates 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 the consensus estimate of $609.87 million. During the same quarter in the previous year, the company posted $0.98 earnings per share. Domino’s Pizza’s revenue for the quarter was up 14.8% compared to the same quarter last year. Equities research analysts anticipate that Domino’s Pizza will post $5.69 EPS for the current fiscal year.
Domino’s Pizza announced that its Board of Directors has authorized a share repurchase program on Wednesday, August 2nd that authorizes the company to repurchase $1.25 billion in shares. This repurchase authorization authorizes the restaurant operator to buy up to 13.5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.
Several large investors have recently made changes to their positions in the business. State of Wisconsin Investment Board lifted its position in shares of Domino’s Pizza by 17.4% during the 1st quarter. State of Wisconsin Investment Board now owns 32,021 shares of the restaurant operator’s stock worth $5,901,000 after purchasing an additional 4,738 shares during the last quarter. Swiss National Bank lifted its position in shares of Domino’s Pizza by 2.9% during the 2nd quarter. Swiss National Bank now owns 175,200 shares of the restaurant operator’s stock worth $37,060,000 after purchasing an additional 4,900 shares during the last quarter. KBC Group NV lifted its position in shares of Domino’s Pizza by 32.3% during the 2nd quarter. KBC Group NV now owns 8,382 shares of the restaurant operator’s stock worth $1,773,000 after purchasing an additional 2,048 shares during the last quarter. Chicago Equity Partners LLC lifted its position in shares of Domino’s Pizza by 572.2% during the 2nd quarter. Chicago Equity Partners LLC now owns 122,105 shares of the restaurant operator’s stock worth $25,829,000 after purchasing an additional 103,940 shares during the last quarter. Finally, Turner Investments LLC acquired a new position in shares of Domino’s Pizza during the 1st quarter worth about $1,491,000. 94.22% of the stock is owned by institutional investors.
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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