Domino’s Pizza Inc (DPZ) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research lowered shares of Domino’s Pizza Inc (NYSE:DPZ) from a buy rating to a hold rating in a research note published on Wednesday morning.
According to Zacks, “Domino's Pizza’s second-quarter 2017 adjusted earnings of $1.32 per share beat the Zacks Consensus Estimate by 8.2% and climbed 34.7% year over year (y/y) on strong sales and a lower share count. Revenues rose 14.8% y/y to $628.6 million and topped the consensus mark by 2.5%. In fact, the company has been posting positive comps in domestic and international markets over the last several quarters. However, strength in domestic markets was overshadowed by weak international comps growth, particularly in Europe, in this quarter. Nevertheless, initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help regain the momentum. In addition, the company’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.”
A number of other equities analysts also recently commented on DPZ. BTIG Research reaffirmed a buy rating and issued a $233.00 price objective (up previously from $213.00) on shares of Domino’s Pizza in a report on Thursday, June 1st. Jefferies Group LLC reaffirmed a hold rating and issued a $185.00 price objective (up previously from $180.00) on shares of Domino’s Pizza in a report on Saturday, April 29th. BidaskClub downgraded shares of Domino’s Pizza from a buy rating to a hold rating in a report on Monday, July 24th. Maxim Group lifted their price objective on shares of Domino’s Pizza from $186.00 to $200.00 and gave the stock a hold rating in a report on Thursday, June 1st. Finally, Sanford C. Bernstein reaffirmed a market perform rating and issued a $215.00 price objective on shares of Domino’s Pizza in a report on Tuesday, July 25th. Thirteen equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus target price of $194.66.
Domino’s Pizza (NYSE DPZ) traded down 2.49% during midday trading on Wednesday, hitting $178.73. 2,112,333 shares of the stock traded hands. The stock has a market cap of $8.62 billion, a price-to-earnings ratio of 35.52 and a beta of 0.35. The company has a 50-day moving average price of $196.87 and a 200 day moving average price of $194.37. Domino’s Pizza has a one year low of $145.00 and a one year high of $221.58.
Domino’s Pizza (NYSE:DPZ) last released its quarterly earnings data on Tuesday, July 25th. The restaurant operator reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.09. The firm had revenue of $628.61 million during the quarter, compared to the consensus estimate of $609.87 million. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The firm’s revenue was up 14.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.98 earnings per share. Equities research analysts anticipate that Domino’s Pizza will post $5.71 earnings per share for the current year.
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The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 15th will be issued a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 1.03%. The ex-dividend date of this dividend is Thursday, September 14th. Domino’s Pizza’s payout ratio is currently 36.65%.
Domino’s Pizza announced that its board has authorized a stock 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 reacquire up to 13.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.
A number of large investors have recently bought and sold shares of DPZ. MCF Advisors LLC increased its stake in Domino’s Pizza by 0.5% in the first quarter. MCF Advisors LLC now owns 879 shares of the restaurant operator’s stock valued at $162,000 after buying an additional 4 shares during the last quarter. M Holdings Securities Inc. increased its stake in Domino’s Pizza by 0.6% in the first quarter. M Holdings Securities Inc. now owns 3,263 shares of the restaurant operator’s stock valued at $601,000 after buying an additional 19 shares during the last quarter. Sheaff Brock Investment Advisors LLC increased its stake in Domino’s Pizza by 1.3% in the second quarter. Sheaff Brock Investment Advisors LLC now owns 1,996 shares of the restaurant operator’s stock valued at $422,000 after buying an additional 25 shares during the last quarter. Nisa Investment Advisors LLC increased its stake in Domino’s Pizza by 0.3% in the second quarter. Nisa Investment Advisors LLC now owns 11,947 shares of the restaurant operator’s stock valued at $2,528,000 after buying an additional 30 shares during the last quarter. Finally, MML Investors Services LLC increased its stake in Domino’s Pizza by 3.2% in the second quarter. MML Investors Services LLC now owns 1,405 shares of the restaurant operator’s stock valued at $297,000 after buying an additional 44 shares during the last quarter. 99.37% of the stock is owned by institutional investors and hedge funds.
Domino’s Pizza Company Profile
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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