Domino’s Pizza Inc (DPZ) Stock Rating Lowered by 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 report released on Tuesday.
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 five 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'sinitiatives on the digital front, 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.”
Several other equities research analysts also recently issued reports on the stock. Argus downgraded shares of Domino’s Pizza from a “buy” rating to a “hold” rating and raised their target price for the company from $145.00 to $183.30 in a research note on Friday, August 25th. Longbow Research upgraded shares of Domino’s Pizza from a “neutral” rating to a “buy” rating and set a $229.00 target price for the company in a research note on Friday, July 28th. Stephens upgraded shares of Domino’s Pizza from an “equal weight” rating to an “overweight” rating and cut their target price for the company from $210.00 to $185.00 in a research note on Wednesday, July 26th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $215.00 target price on shares of Domino’s Pizza in a research note on Tuesday, July 25th. Finally, BidaskClub downgraded shares of Domino’s Pizza from a “buy” rating to a “hold” rating in a research note on Monday, July 24th. Thirteen investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $193.66.
Shares of Domino’s Pizza (DPZ) opened at 178.93 on Tuesday. The firm has a market cap of $8.63 billion, a price-to-earnings ratio of 35.56 and a beta of 0.35. The stock 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 1-year low of $145.00 and a 1-year high of $221.58.
Domino’s Pizza (NYSE:DPZ) last issued its earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.23 by $0.09. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The business had revenue of $628.61 million during the quarter, compared to the consensus estimate of $609.87 million. During the same period last year, the business posted $0.98 EPS. Domino’s Pizza’s revenue was up 14.8% on a year-over-year basis. On average, equities research analysts expect that Domino’s Pizza will post $5.69 earnings per share for the current fiscal year.
Domino’s Pizza announced that its board has authorized a share repurchase plan on Wednesday, August 2nd that allows the company to repurchase $1.25 billion in shares. This repurchase authorization allows the restaurant operator to purchase up to 13.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
Several large investors have recently added to or reduced their stakes in DPZ. BlackRock Inc. increased its stake in Domino’s Pizza by 0.5% in the second quarter. BlackRock Inc. now owns 5,369,812 shares of the restaurant operator’s stock worth $1,135,876,000 after buying an additional 24,988 shares during the last quarter. Vanguard Group Inc. increased its stake in Domino’s Pizza by 8.5% in the second quarter. Vanguard Group Inc. now owns 4,164,927 shares of the restaurant operator’s stock worth $881,007,000 after buying an additional 327,585 shares during the last quarter. Renaissance Technologies LLC increased its stake in Domino’s Pizza by 43.7% in the second quarter. Renaissance Technologies LLC now owns 3,060,900 shares of the restaurant operator’s stock worth $647,472,000 after buying an additional 930,200 shares during the last quarter. Ameriprise Financial Inc. increased its stake in Domino’s Pizza by 499.8% in the first quarter. Ameriprise Financial Inc. now owns 1,750,503 shares of the restaurant operator’s stock worth $322,614,000 after buying an additional 1,458,667 shares during the last quarter. Finally, State Street Corp increased its stake in Domino’s Pizza by 1.1% in the first quarter. State Street Corp now owns 1,538,004 shares of the restaurant operator’s stock worth $283,451,000 after buying an additional 16,726 shares during the last quarter. Institutional investors own 94.28% of the company’s stock.
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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