Papa John’s International Inc. (PZZA) Downgraded by Zacks Investment Research to “Hold”
According to Zacks, “Papa John’s has been posting positive comps both in the domestic as well as international markets over the past several quarters. Going forward, the company is likely to maintain comps growth on the back of its focus on menu innovation and value offers to impress guests. The company also has a positive record of earnings surprises in the recent quarters. Estimates too have been mostly stable ahead of the company’s Q3 earnings release. Meanwhile, large scale international expansion has been the backbone of Papa John’s operations recently. The company’s strategic partnerships and increased focus on franchising also bode well. Further, the company’s investments in technology-driven initiatives like digital ordering and development of applications should continue to boost revenues. However, higher costs, negative currency translation and a soft consumer spending environment in the U.S. restaurant space raise concerns.”
A number of other equities analysts have also recently issued reports on PZZA. Nomura cut Papa John’s International from a buy rating to a neutral rating and raised their target price for the stock from $66.47 to $70.00 in a report on Wednesday, June 22nd. KeyCorp upgraded Papa John’s International from a sector weight rating to an overweight rating and set a $80.00 target price on the stock in a report on Wednesday, July 20th. BTIG Research set a $78.00 target price on Papa John’s International and gave the stock a buy rating in a report on Wednesday, August 3rd. Jefferies Group restated a hold rating on shares of Papa John’s International in a report on Thursday, August 4th. Finally, TheStreet upgraded Papa John’s International from a hold rating to a buy rating in a report on Wednesday, August 31st. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $70.50.
Shares of Papa John’s International (NASDAQ:PZZA) opened at 75.85 on Tuesday. The company has a 50 day moving average price of $77.08 and a 200 day moving average price of $67.48. Papa John’s International has a 52 week low of $44.47 and a 52 week high of $82.55. The company has a market cap of $2.81 billion, a PE ratio of 32.18 and a beta of 0.23.
Papa John’s International (NASDAQ:PZZA) last issued its earnings results on Tuesday, August 2nd. The company reported $0.61 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.54 by $0.07. Papa John’s International had a return on equity of 454.11% and a net margin of 5.52%. The firm had revenue of $423 million for the quarter, compared to analysts’ expectations of $414.45 million. During the same quarter last year, the business earned $0.27 earnings per share. The company’s revenue was up 6.0% compared to the same quarter last year. On average, equities analysts expect that Papa John’s International will post $2.45 earnings per share for the current year.
In related news, CEO John H. Schnatter sold 86,363 shares of Papa John’s International stock in a transaction that occurred on Wednesday, October 5th. The stock was sold at an average price of $76.92, for a total value of $6,643,041.96. Following the sale, the chief executive officer now owns 9,712,005 shares of the company’s stock, valued at approximately $747,047,424.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Lance F. Tucker sold 6,334 shares of Papa John’s International stock in a transaction that occurred on Thursday, August 4th. The shares were sold at an average price of $77.27, for a total value of $489,428.18. Following the completion of the sale, the chief financial officer now directly owns 38,975 shares in the company, valued at approximately $3,011,598.25. The disclosure for this sale can be found here. 28.80% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in the stock. Eqis Capital Management Inc. raised its stake in shares of Papa John’s International by 26.8% in the third quarter. Eqis Capital Management Inc. now owns 8,735 shares of the company’s stock worth $689,000 after buying an additional 1,847 shares in the last quarter. Mason Street Advisors LLC purchased a new stake in shares of Papa John’s International during the second quarter worth about $366,000. Royal Bank of Canada raised its stake in shares of Papa John’s International by 35.4% in the second quarter. Royal Bank of Canada now owns 342,902 shares of the company’s stock worth $23,317,000 after buying an additional 89,590 shares in the last quarter. IFP Advisors Inc raised its stake in shares of Papa John’s International by 3.6% in the second quarter. IFP Advisors Inc now owns 2,644 shares of the company’s stock worth $180,000 after buying an additional 91 shares in the last quarter. Finally, Amalgamated Bank purchased a new stake in shares of Papa John’s International during the second quarter worth about $236,000. 75.18% of the stock is currently owned by institutional investors and hedge funds.
Papa John’s International Company Profile
Papa John’s International, Inc operates and franchises pizza delivery and carryout restaurants. The Company operates restaurants under the trademark Papa John’s. It operates in five segments: domestic Company-owned restaurants, domestic commissaries, North America franchising, international operations, and all other business units.
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