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 “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Domino's Pizza has considerable international presence and is thus highly vulnerable to fluctuations in exchange rates. Despite the weakening of the U.S. dollar in the first half of 2016 compared to the prior year, currency headwinds are expected to keep profits under pressure. In fact, the company expects foreign currency to have an $8 million to $12 million year-over-year impact on pretax earnings in 2016. Moreover, higher labor costs and expenses related to sales initiatives are likely to remain headwinds. Nonetheless, the company has been posting positive comps over the past four quarters, and its digital ordering system, focus on re-imaging and other sales initiatives are expected to help it sustain the momentum. Meanwhile, the company has mixed record of earnings surprises in recent quarters. However, soft consumer spending environment in the U.S. restaurant space may dent sales.”
Other equities analysts have also recently issued reports about the company. Citigroup Inc. boosted their target price on Domino’s Pizza from $137.00 to $159.00 and gave the company a “neutral” rating in a research note on Tuesday, September 13th. Goldman Sachs Group Inc. reissued a “buy” rating and set a $139.00 target price on shares of Domino’s Pizza in a research note on Tuesday, July 19th. Jefferies Group reissued a “hold” rating on shares of Domino’s Pizza in a research note on Thursday, August 4th. Vetr cut Domino’s Pizza from a “buy” rating to a “hold” rating and set a $133.50 target price on the stock. in a research note on Thursday, June 30th. Finally, Barclays PLC boosted their target price on Domino’s Pizza from $121.00 to $132.00 and gave the company an “equal weight” rating in a research note on Thursday, July 21st. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have given a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $139.96.
Domino’s Pizza (NYSE:DPZ) opened at 152.61 on Tuesday. Domino’s Pizza has a 52 week low of $100.56 and a 52 week high of $153.28. The firm’s 50-day moving average price is $148.45 and its 200 day moving average price is $135.08. The company has a market capitalization of $7.36 billion, a PE ratio of 41.08 and a beta of 0.78.
Domino’s Pizza (NYSE:DPZ) last announced its quarterly earnings results on Thursday, July 21st. The company reported $0.98 EPS for the quarter, topping the Zacks’ consensus estimate of $0.94 by $0.04. The business had revenue of $547.34 million for the quarter, compared to analysts’ expectations of $533.44 million. Domino’s Pizza had a negative return on equity of 11.59% and a net margin of 8.45%. The business’s quarterly revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS. Equities research analysts expect that Domino’s Pizza will post $4.14 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Thursday, September 15th will be issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.00%. The ex-dividend date is Tuesday, September 13th. Domino’s Pizza’s payout ratio is currently 40.86%.
In other news, Director James A. Goldman sold 3,095 shares of the company’s stock in a transaction on Monday, July 25th. The stock was sold at an average price of $147.66, for a total transaction of $457,007.70. Following the transaction, the director now directly owns 15,167 shares of the company’s stock, valued at $2,239,559.22. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Richard E. Allison, Jr. sold 20,000 shares of the company’s stock in a transaction on 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 transaction, the insider now directly owns 42,080 shares in the company, valued at $6,182,393.60. The disclosure for this sale can be found here. Insiders own 5.03% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in DPZ. Capital World Investors increased its position in shares of Domino’s Pizza by 2.2% in the second quarter. Capital World Investors now owns 5,493,504 shares of the company’s stock worth $721,737,000 after buying an additional 119,188 shares during the last quarter. Vanguard Group Inc. increased its position in Domino’s Pizza by 2.1% in the second quarter. Vanguard Group Inc. now owns 3,611,585 shares of the company’s stock worth $474,489,000 after buying an additional 74,268 shares in the last quarter. BlackRock Fund Advisors increased its position in Domino’s Pizza by 5.3% in the second quarter. BlackRock Fund Advisors now owns 1,785,461 shares of the company’s stock worth $234,574,000 after buying an additional 89,797 shares in the last quarter. BlackRock Institutional Trust Company N.A. increased its position in Domino’s Pizza by 5.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,593,162 shares of the company’s stock worth $209,310,000 after buying an additional 77,122 shares in the last quarter. Finally, 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. 95.61% of the stock is currently owned by hedge funds and other institutional investors.
Domino’s Pizza Company Profile
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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