Domino’s Pizza Inc (DPZ) Raised to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Domino’s Pizza Inc (NYSE:DPZ) from a hold rating to a buy rating in a research report sent to investors on Friday morning. They currently have $213.00 target price on the restaurant operator’s stock.
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 four quarters. In fact, second-quarter 2017 marked the 25th and 94th consecutive quarter of positive same-store-sales domestically and internationally, respectively. However, a soft consumer spending environment in the U.S. restaurants space might limit revenue growth. Higher costs and negative currency translation are likely to hurt profits too. Nevertheless, going forward, Domino's initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help sustain the momentum.”
A number of other brokerages have also recently commented on DPZ. Longbow Research cut shares of Domino’s Pizza from a buy rating to a neutral rating in a research report on Friday, June 9th. BidaskClub upgraded shares of Domino’s Pizza from a buy rating to a strong-buy rating in a research report on Thursday, June 22nd. BTIG Research reiterated a buy rating and set a $233.00 price target (up from $213.00) on shares of Domino’s Pizza in a research report on Thursday, June 1st. Sanford C. Bernstein reiterated a market perform rating and set a $215.00 price target on shares of Domino’s Pizza in a research report on Tuesday, July 25th. Finally, Instinet reiterated a neutral rating and set a $198.00 price target (up from $196.00) on shares of Domino’s Pizza in a research report on Saturday, July 22nd. Eleven analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $196.64.
Shares of Domino’s Pizza (NYSE:DPZ) opened at 195.62 on Friday. The firm’s 50-day moving average is $188.18 and its 200-day moving average is $194.43. The company has a market capitalization of $9.44 billion, a price-to-earnings ratio of 38.88 and a beta of 0.36. Domino’s Pizza has a 12-month low of $149.67 and a 12-month high of $221.58.
Domino’s Pizza (NYSE:DPZ) last issued its quarterly earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $609.87 million. During the same period last year, the business earned $0.98 earnings per share. The business’s quarterly revenue was up 14.8% on a year-over-year basis. On average, equities analysts predict that Domino’s Pizza will post $5.69 EPS for the current year.
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The business also recently declared 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 0.94%. The ex-dividend date of this dividend is Thursday, September 14th. Domino’s Pizza’s dividend payout ratio (DPR) is currently 36.65%.
Domino’s Pizza announced that its board has authorized a stock repurchase plan on Wednesday, August 2nd that authorizes the company to repurchase $1.25 billion in outstanding shares. This repurchase authorization authorizes the restaurant operator to buy up to 13.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.
A number of large investors have recently added to or reduced their stakes in DPZ. IHT Wealth Management LLC boosted its holdings in Domino’s Pizza by 19.5% in the first quarter. IHT Wealth Management LLC now owns 569 shares of the restaurant operator’s stock valued at $105,000 after acquiring an additional 93 shares in the last quarter. Commonwealth Bank of Australia boosted its holdings in Domino’s Pizza by 25.0% in the second quarter. Commonwealth Bank of Australia now owns 500 shares of the restaurant operator’s stock valued at $105,000 after acquiring an additional 100 shares in the last quarter. Toronto Dominion Bank boosted its holdings in Domino’s Pizza by 12.2% in the second quarter. Toronto Dominion Bank now owns 590 shares of the restaurant operator’s stock valued at $125,000 after acquiring an additional 64 shares in the last quarter. Acrospire Investment Management LLC bought a new stake in Domino’s Pizza in the second quarter valued at $127,000. Finally, Whittier Trust Co. of Nevada Inc. boosted its holdings in Domino’s Pizza by 115.4% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 687 shares of the restaurant operator’s stock valued at $145,000 after acquiring an additional 368 shares in the last quarter. Institutional investors and hedge funds own 94.22% of the company’s stock.
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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