Domino’s Pizza Inc (DPZ) Upgraded by Zacks Investment Research to “Buy”
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 to investors on Thursday. The firm presently has a $221.00 price objective on the restaurant operator’s stock. Zacks Investment Research‘s price target indicates a potential upside of 11.85% 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. 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.”
A number of other analysts have also issued reports on the company. Longbow Research lowered Domino’s Pizza from a “buy” rating to a “neutral” rating in a research note on Friday, June 9th. BidaskClub raised Domino’s Pizza from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, July 12th. Instinet reissued a “neutral” rating and issued a $198.00 price target (up from $196.00) on shares of Domino’s Pizza in a research note on Saturday, July 22nd. Bank of America Corporation raised their price target on Domino’s Pizza from $210.00 to $235.00 and gave the stock a “buy” rating in a research note on Tuesday, June 13th. Finally, Stephens raised Domino’s Pizza from an “equal weight” rating to an “overweight” rating and decreased their price target for the stock from $210.00 to $185.00 in a research note on Wednesday, July 26th. Eleven investment 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 $197.14.
Domino’s Pizza (NYSE DPZ) traded up 0.21% on Thursday, reaching $197.99. 345,207 shares of the company’s stock were exchanged. Domino’s Pizza has a 1-year low of $149.67 and a 1-year high of $221.58. The company has a 50 day moving average price of $188.46 and a 200-day moving average price of $194.48. The company has a market capitalization of $9.55 billion, a PE ratio of 39.35 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 (EPS) for the quarter, topping 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 firm had revenue of $628.61 million for the quarter, compared to analyst estimates of $609.87 million. During the same period last year, the company earned $0.98 EPS. The firm’s quarterly revenue was up 14.8% on a year-over-year basis. On average, equities research analysts anticipate that Domino’s Pizza will post $5.69 earnings per share for the current year.
Domino’s Pizza declared that its board has approved a stock repurchase program on Wednesday, August 2nd that authorizes the company to buyback $1.25 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 13.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.
A number of institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. lifted 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 worth $1,135,876,000 after acquiring an additional 24,988 shares in the last quarter. Vanguard Group Inc. lifted 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 worth $881,007,000 after acquiring an additional 327,585 shares in the last quarter. Renaissance Technologies LLC lifted 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 worth $647,472,000 after acquiring an additional 930,200 shares in the last quarter. State Street Corp lifted 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 worth $283,451,000 after acquiring an additional 16,726 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted 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 worth $154,887,000 after acquiring an additional 154,417 shares in the last quarter. 94.22% of the stock is currently owned by hedge funds and other 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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