Domino’s Pizza (NASDAQ:DPZ) Reaches New 1-Year Low – What’s Next?

Domino’s Pizza Inc (NASDAQ:DPZ)’s stock price hit a new 52-week low during trading on Monday . The company traded as low as $297.20 and last traded at $299.1440, with a volume of 122600 shares changing hands. The stock had previously closed at $312.47.

Key Headlines Impacting Domino’s Pizza

Here are the key news stories impacting Domino’s Pizza this week:

• Positive Sentiment: Several firms still see meaningful upside in Domino’s despite trimming targets: TD Cowen reaffirmed a hold rating with a $350 target, JPMorgan kept an overweight rating with a $380 target, and BTIG and Baird maintained constructive views with $425 and $350 targets, respectively. Article Title
• Positive Sentiment: Analysts generally kept favorable ratings in place, suggesting the recent selloff may be driven more by uncertainty than by a full deterioration in the long-term outlook. Article Title
• Neutral Sentiment: Domino’s announced a leadership succession plan, with COO Joe Jordan set to become CEO in late September as Russell Weiner retires and becomes executive chairman. Article Title
• Neutral Sentiment: The company also acknowledged that same-store sales are still tracking below target, which may be tempering confidence in a near-term recovery. Article Title
• Negative Sentiment: Investors appear concerned that the CEO retirement signals a leadership change during a period of slowing pizza sales, which has pressured the stock. Article Title
• Negative Sentiment: Recent estimate cuts from JPMorgan, BTIG, and Baird reflect a more cautious near-term view, even though their targets remain above the current share price. Article Title

Analysts Set New Price Targets

DPZ has been the topic of several recent analyst reports. Royal Bank Of Canada reiterated a “sector perform” rating and set a $325.00 target price on shares of Domino’s Pizza in a research report on Tuesday. Deutsche Bank Aktiengesellschaft reduced their price target on Domino’s Pizza from $480.00 to $435.00 and set a “buy” rating for the company in a report on Tuesday, April 28th. Stifel Nicolaus set a $400.00 price target on Domino’s Pizza in a research note on Monday, April 27th. Argus raised Domino’s Pizza to a “hold” rating in a report on Monday, March 9th. Finally, BMO Capital Markets dropped their price objective on Domino’s Pizza from $500.00 to $450.00 and set an “outperform” rating on the stock in a report on Tuesday, April 28th. Seventeen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $412.97.

Domino’s Pizza Price Performance

The firm has a market cap of $9.41 billion, a PE ratio of 16.29, a PEG ratio of 1.37 and a beta of 0.97. The business has a 50-day moving average price of $326.10 and a two-hundred day moving average price of $373.83.

Domino’s Pizza (NASDAQ:DPZ) last released its quarterly earnings data on Monday, April 27th. The restaurant operator reported $4.13 EPS for the quarter, missing the consensus estimate of $4.29 by ($0.16). The business had revenue of $1.15 billion during the quarter. Domino’s Pizza had a negative return on equity of 15.04% and a net margin of 11.89%.The firm’s quarterly revenue was up 3.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.33 EPS. Equities analysts expect that Domino’s Pizza Inc will post 19.07 earnings per share for the current fiscal year.

Domino’s Pizza Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a dividend of $1.99 per share. The ex-dividend date is Monday, June 15th. This represents a $7.96 dividend on an annualized basis and a yield of 2.8%. Domino’s Pizza’s payout ratio is presently 45.83%.

Insider Activity

In other Domino’s Pizza news, EVP Kelly E. Garcia sold 487 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $311.74, for a total value of $151,817.38. Following the sale, the executive vice president owned 9,352 shares of the company’s stock, valued at $2,915,392.48. This represents a 4.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold a total of 1,463 shares of company stock valued at $466,807 over the last quarter. 0.89% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Empowered Funds LLC lifted its stake in Domino’s Pizza by 130.3% in the 1st quarter. Empowered Funds LLC now owns 18,625 shares of the restaurant operator’s stock valued at $6,682,000 after buying an additional 10,538 shares in the last quarter. Parallel Advisors LLC grew its holdings in Domino’s Pizza by 955.5% during the 1st quarter. Parallel Advisors LLC now owns 11,262 shares of the restaurant operator’s stock valued at $4,041,000 after buying an additional 10,195 shares during the last quarter. First Nebraska Trust Co purchased a new position in Domino’s Pizza during the first quarter worth $10,704,000. Alpine Woods Capital Investors LLC increased its position in Domino’s Pizza by 11.4% during the first quarter. Alpine Woods Capital Investors LLC now owns 4,065 shares of the restaurant operator’s stock worth $1,458,000 after buying an additional 416 shares in the last quarter. Finally, Ritter Alpha LP acquired a new position in shares of Domino’s Pizza in the first quarter worth $276,000. 94.63% of the stock is currently owned by institutional investors and hedge funds.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc (NASDAQ: DPZ) is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand‐crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino’s has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino’s Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino’s has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.