Domino’s Pizza Inc (DPZ) Rating Lowered to Hold at 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 Pizza’s third-quarter 2017 adjusted earnings of $1.27 per share beat the Zacks Consensus Estimate by 4.1% and increased 32% year over year (y/y) on strong sales and a lower share count. Revenues improved 13.6% y/y to $643.6 million and topped the consensus mark by 2%. In fact, the company has been posting positive comps in domestic and international markets over the last several quarters. However, both domestic and international comps compared unfavorably with the rise witnessed in the year-ago quarter. Going forward, increased store count, initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help regain the momentum. Meanwhile, Domino’s shares outpaced the industry year to date. Yet, higher labor costs and expenses related to initiatives might dent margins. Also, soft consumer spending environment in the U.S. restaurants space and adverse forex translation remain concerns.”
Other equities research analysts have also issued reports about the stock. BidaskClub lowered shares of Domino’s Pizza from a “buy” rating to a “hold” rating in a report on Monday, July 24th. Wells Fargo & Company reaffirmed a “market perform” rating and issued a $210.00 price target (up from $204.00) on shares of Domino’s Pizza in a report on Monday, October 2nd. Stephens raised shares of Domino’s Pizza from an “equal weight” rating to an “overweight” rating and lowered their price target for the company from $210.00 to $185.00 in a report on Wednesday, July 26th. Maxim Group reaffirmed a “hold” rating and issued a $220.00 price target on shares of Domino’s Pizza in a report on Friday, October 13th. Finally, Guggenheim reaffirmed a “buy” rating and issued a $230.00 price target on shares of Domino’s Pizza in a report on Friday, October 13th. Eleven research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Domino’s Pizza presently has an average rating of “Hold” and an average price target of $208.31.
Shares of Domino’s Pizza (NYSE:DPZ) traded up 0.57% during trading on Tuesday, reaching $182.73. The company had a trading volume of 665,389 shares. The company’s 50 day moving average is $194.44 and its 200-day moving average is $196.90. The stock has a market capitalization of $7.99 billion, a price-to-earnings ratio of 34.79 and a beta of 0.36. Domino’s Pizza has a 1-year low of $153.58 and a 1-year high of $221.58.
Domino’s Pizza (NYSE:DPZ) last posted its quarterly earnings results on Thursday, October 12th. The restaurant operator reported $1.27 EPS for the quarter, beating the consensus estimate of $1.22 by $0.05. Domino’s Pizza had a net margin of 9.47% and a negative return on equity of 12.59%. The company had revenue of $643.60 million for the quarter, compared to analyst estimates of $627.85 million. During the same period in the prior year, the company earned $0.96 earnings per share. The firm’s revenue was up 13.6% on a year-over-year basis. On average, equities research analysts anticipate that Domino’s Pizza will post $5.76 earnings per share for the current year.
Domino’s Pizza announced that its Board of Directors has initiated a share 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 reacquire up to 13.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
In other news, insider Russell J. Weiner sold 7,276 shares of the firm’s stock in a transaction that occurred on Tuesday, October 17th. The shares were sold at an average price of $195.00, for a total transaction of $1,418,820.00. Following the completion of the sale, the insider now owns 17,563 shares in the company, valued at approximately $3,424,785. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 3.57% of the stock is owned by company insiders.
Large investors have recently bought and sold shares of the stock. Commonwealth Bank of Australia boosted its position in shares of Domino’s Pizza by 25.0% during the 2nd quarter. Commonwealth Bank of Australia now owns 500 shares of the restaurant operator’s stock worth $105,000 after purchasing an additional 100 shares during the period. Toronto Dominion Bank boosted its position in shares of Domino’s Pizza by 12.2% during the 2nd quarter. Toronto Dominion Bank now owns 590 shares of the restaurant operator’s stock worth $125,000 after purchasing an additional 64 shares during the period. Acrospire Investment Management LLC purchased a new position in shares of Domino’s Pizza during the 2nd quarter worth approximately $127,000. Whittier Trust Co. of Nevada Inc. boosted its position in shares of Domino’s Pizza by 115.4% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 687 shares of the restaurant operator’s stock worth $145,000 after purchasing an additional 368 shares during the period. Finally, Meeder Asset Management Inc. purchased a new position in shares of Domino’s Pizza during the 2nd quarter worth approximately $160,000. 94.20% of the stock is 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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