Domino’s Pizza Inc. (DPZ) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of Domino’s Pizza Inc. (NYSE:DPZ) from a hold rating to a buy rating in a research note published on Monday. Zacks Investment Research currently has $169.00 price objective on the stock.
According to Zacks, “Domino's Pizza’s revenues have topped the Zacks Consensus Estimate in six of the last seven quarters. The second-quarter 2016 marked the 21st consecutive quarter of positive same-store-sales domestically and 90th quarter of positive comps in the international segment. Going forward, the company’s digital ordering system, focus on re-imaging and other sales initiatives are likely to help sustain the momentum. Further, the pizza category is a fast growing segment in the U.S. quick-service restaurant industry and Domino’s ranks as the second-largest pizza chain in the world. Its solid brand positioning will thus help boost sales in the upcoming quarters. Meanwhile, the company has mixed record of earnings surprises in recent quarters. Still, higher labor costs and expenses related to sales initiatives, soft consumer spending environment in the U.S. restaurant space and negative currency translation remain potent headwinds.”
A number of other research firms have also weighed in on DPZ. Citigroup Inc. lifted their target price on Domino’s Pizza from $137.00 to $159.00 and gave the company a neutral rating in a report on Tuesday, September 13th. Goldman Sachs Group Inc. reaffirmed a buy rating and set a $139.00 target price on shares of Domino’s Pizza in a report on Tuesday, July 19th. Peel Hunt reissued a buy rating on shares of Domino’s Pizza in a report on Thursday, October 13th. Numis Securities Ltd reissued a buy rating on shares of Domino’s Pizza in a report on Wednesday, July 20th. Finally, Nomura lowered Domino’s Pizza from a buy rating to a neutral rating and set a $135.00 price objective for the company. in a report on Wednesday, June 22nd. One investment analyst has rated the stock with a sell rating, ten have assigned 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 target price of $144.73.
Shares of Domino’s Pizza (NYSE:DPZ) traded up 6.112% on Monday, reaching $161.301. 1,215,121 shares of the company were exchanged. Domino’s Pizza has a 12-month low of $100.59 and a 12-month high of $161.49. The firm has a market capitalization of $7.78 billion, a PE ratio of 43.419 and a beta of 0.81. The stock’s 50-day moving average is $151.21 and its 200 day moving average is $137.76.
Domino’s Pizza (NYSE:DPZ) last announced its quarterly earnings data on Tuesday, October 18th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.90 by $0.06. Domino’s Pizza had a negative return on equity of 11.59% and a net margin of 8.45%. The business had revenue of $566.70 million for the quarter, compared to analysts’ expectations of $339.32 million. During the same period in the previous year, the business posted $0.67 EPS. The firm’s quarterly revenue was up 16.9% compared to the same quarter last year. On average, analysts forecast that Domino’s Pizza will post $4.14 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Thursday, September 15th were issued a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 1.00%. The ex-dividend date was Tuesday, September 13th. Domino’s Pizza’s dividend payout ratio is 40.86%.
In other Domino’s Pizza news, Director James A. Goldman sold 3,095 shares of the stock in a transaction dated Monday, July 25th. The stock was sold at an average price of $147.66, for a total value of $457,007.70. Following the transaction, the director now owns 15,167 shares of the company’s stock, valued at $2,239,559.22. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Richard E. Allison, Jr. sold 20,000 shares of the stock in a transaction dated Friday, August 19th. The shares were sold at an average price of $146.92, for a total value of $2,938,400.00. Following the completion of the transaction, the insider now directly owns 42,080 shares in the company, valued at approximately $6,182,393.60. The disclosure for this sale can be found here. 5.03% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Massachusetts Financial Services Co. MA increased its position in Domino’s Pizza by 99.7% in the second quarter. Massachusetts Financial Services Co. MA now owns 934,550 shares of the company’s stock worth $122,781,000 after buying an additional 466,552 shares in the last quarter. Credit Agricole S A increased its position in Domino’s Pizza by 628.7% in the first quarter. Credit Agricole S A now owns 408,367 shares of the company’s stock worth $53,848,000 after buying an additional 352,325 shares in the last quarter. JPMorgan Chase & Co. increased its position in Domino’s Pizza by 260.3% in the first quarter. JPMorgan Chase & Co. now owns 178,269 shares of the company’s stock worth $23,507,000 after buying an additional 289,453 shares in the last quarter. State Street Corp increased its position in Domino’s Pizza by 17.6% in the second quarter. State Street Corp now owns 1,583,984 shares of the company’s stock worth $208,104,000 after buying an additional 237,447 shares in the last quarter. Finally, American Century Companies Inc. purchased a new position in Domino’s Pizza during the second quarter worth $11,807,000. 95.55% of the stock is currently owned by institutional investors.
About Domino’s Pizza
Domino’s Pizza, Inc is a pizza restaurant chain. The Company operates pizza stores at 12,500 locations in over 80 markets. It operates through three segments: domestic stores, international franchise and supply chain. Its Domestic Stores segment consists primarily of its franchise operations, through which it operates network of over 4,820 franchised stores located in the United States.
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