Domino's Pizza (DPZ) Upgraded by Zacks Investment Research to Buy

Domino's Pizza (NYSE:DPZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday. The brokerage currently has a $221.00 price target on the restaurant operator’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 12.02% from the company’s current price.

According to Zacks, “Domino's shares have slightly outpaced the industry in the past one year. 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. In fact, the company’s revenues and earnings surpassed the Zacks Consensus Estimate in each of the trailing six quarters. Markedly, the third quarter of 2017 marked the 26th and 95th consecutive quarter of positive same-store-sales domestically and internationally, respectively. Going forward, Domino's initiatives on the digital front, increased store counts, 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. restaurant space might limit revenue growth too.”

DPZ has been the topic of several other research reports. Credit Suisse Group boosted their price target on Domino's Pizza from $200.00 to $205.00 and gave the stock a “neutral” rating in a research note on Friday, October 13th. Maxim Group reissued a “buy” rating and set a $240.00 price target on shares of Domino's Pizza in a research note on Friday, December 22nd. Nomura raised Domino's Pizza from a “neutral” rating to a “buy” rating and set a $201.00 price target on the stock in a research note on Wednesday, November 29th. Deutsche Bank started coverage on Domino's Pizza in a research note on Monday, December 18th. They set a “buy” rating and a $210.00 price target on the stock. Finally, Oppenheimer reissued a “hold” rating on shares of Domino's Pizza in a research note on Monday, November 6th. Eight research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. Domino's Pizza has a consensus rating of “Buy” and a consensus target price of $208.42.

Shares of Domino's Pizza (NYSE:DPZ) traded up $5.63 during trading hours on Friday, hitting $197.29. The stock had a trading volume of 1,539,400 shares, compared to its average volume of 1,037,433. The stock has a market cap of $8,730.00, a price-to-earnings ratio of 37.58, a price-to-earnings-growth ratio of 1.66 and a beta of 0.37. The company has a debt-to-equity ratio of -1.13, a current ratio of 1.49 and a quick ratio of 1.39. Domino's Pizza has a fifty-two week low of $161.60 and a fifty-two week high of $221.58.

Domino's Pizza (NYSE:DPZ) last announced its quarterly earnings results on Thursday, October 12th. The restaurant operator reported $1.27 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.22 by $0.05. The business had revenue of $643.60 million for the quarter, compared to analyst estimates of $627.85 million. Domino's Pizza had a negative return on equity of 12.59% and a net margin of 9.47%. The company’s quarterly revenue was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.96 EPS. sell-side analysts expect that Domino's Pizza will post 5.79 EPS for the current year.

In other Domino's Pizza news, CFO Jeffrey D. Lawrence sold 17,000 shares of the stock in a transaction on Friday, December 15th. The stock was sold at an average price of $184.87, for a total transaction of $3,142,790.00. Following the transaction, the chief financial officer now owns 26,841 shares of the company’s stock, valued at approximately $4,962,095.67. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Russell J. Weiner sold 7,276 shares of the stock in a transaction on Tuesday, October 17th. The stock was sold at an average price of $195.00, for a total value of $1,418,820.00. Following the transaction, the insider now directly owns 17,563 shares in the company, valued at approximately $3,424,785. The disclosure for this sale can be found here. 3.57% of the stock is currently owned by corporate insiders.

Institutional investors have recently modified their holdings of the business. Commonwealth Bank of Australia lifted its stake 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 lifted its stake 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 $127,000. FNY Partners Fund LP purchased a new position in shares of Domino's Pizza during the 3rd quarter worth $158,000. Finally, Synovus Financial Corp purchased a new position in shares of Domino's Pizza during the 3rd quarter worth $206,000. 94.18% of the stock is currently owned by institutional investors.

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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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