Domino’s Pizza (DPZ) Raised to “Hold” at Zacks Investment Research

Domino’s Pizza (NYSE:DPZ) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Thursday.

According to Zacks, “Shares of Domino's have outperformed the industry in the past one year. Domino's initiatives on the digital front, increased store counts, focus on re-imaging and other sales-boosting strategies bode well. Notably, the second quarter marked the company’s respective 29th and 98th consecutive quarter of positive same-store sales domestically and internationally. We believe that Domino's solid brand positioning might continue to boost sales in the upcoming quarters. Meanwhile, the company's international growth continues to be strong and diversified across markets, courtesy of exceptional unit level economics. However, high labor costs and expenses related to sales initiatives are likely to remain headwinds. For 2018 and 2019, earnings estimate have witnessed downward revisions over the past 60 days. Additionally, the company’s high vulnerability to fluctuations in exchange rates poses threat.”

A number of other brokerages also recently commented on DPZ. Argus lifted their price objective on Domino’s Pizza from $280.00 to $320.00 and gave the stock a “buy” rating in a research report on Friday, June 22nd. They noted that the move was a valuation call. TheStreet upgraded Domino’s Pizza from a “c+” rating to a “b” rating in a research report on Friday, June 15th. Guggenheim lifted their price objective on Domino’s Pizza from $280.00 to $305.00 and gave the stock a “buy” rating in a research report on Tuesday, June 19th. Morgan Stanley lifted their price objective on Domino’s Pizza from $260.00 to $270.00 and gave the stock an “equal weight” rating in a research report on Monday, July 16th. Finally, Maxim Group lifted their price objective on Domino’s Pizza from $270.00 to $285.00 and gave the stock a “hold” rating in a research report on Tuesday, July 17th. They noted that the move was a valuation call. Ten equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $268.48.

Domino’s Pizza stock traded up $4.25 during trading on Thursday, reaching $293.43. 6,736 shares of the company were exchanged, compared to its average volume of 485,144. Domino’s Pizza has a 52-week low of $166.74 and a 52-week high of $305.34. The company has a market cap of $12.18 billion, a price-to-earnings ratio of 54.95, a PEG ratio of 1.83 and a beta of 0.25. The company has a debt-to-equity ratio of -1.17, a quick ratio of 1.70 and a current ratio of 1.81.

Domino’s Pizza (NYSE:DPZ) last announced its quarterly earnings data on Thursday, July 19th. The restaurant operator reported $1.84 EPS for the quarter, topping the Zacks’ consensus estimate of $1.74 by $0.10. Domino’s Pizza had a negative return on equity of 11.29% and a net margin of 10.19%. The firm had revenue of $779.40 million for the quarter, compared to the consensus estimate of $786.88 million. During the same quarter last year, the business posted $1.32 earnings per share. The firm’s revenue was up 24.0% compared to the same quarter last year. analysts predict that Domino’s Pizza will post 8.29 EPS for the current fiscal year.

In other news, COO Russell J. Weiner sold 4,404 shares of Domino’s Pizza stock in a transaction on Wednesday, August 22nd. The stock was sold at an average price of $293.88, for a total value of $1,294,247.52. Following the completion of the sale, the chief operating officer now directly owns 13,738 shares of the company’s stock, valued at $4,037,323.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider J Patrick Doyle sold 25,600 shares of Domino’s Pizza stock in a transaction on Thursday, August 30th. The shares were sold at an average price of $301.15, for a total value of $7,709,440.00. Following the completion of the sale, the insider now directly owns 49,670 shares of the company’s stock, valued at $14,958,120.50. The disclosure for this sale can be found here. In the last three months, insiders have sold 40,004 shares of company stock valued at $11,956,888. 3.97% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. grew its stake in shares of Domino’s Pizza by 5.8% in the second quarter. BlackRock Inc. now owns 5,316,377 shares of the restaurant operator’s stock valued at $1,500,121,000 after buying an additional 292,482 shares in the last quarter. FMR LLC grew its stake in shares of Domino’s Pizza by 150.2% in the second quarter. FMR LLC now owns 1,184,342 shares of the restaurant operator’s stock valued at $334,186,000 after buying an additional 711,035 shares in the last quarter. Morgan Stanley grew its stake in shares of Domino’s Pizza by 36.3% in the second quarter. Morgan Stanley now owns 290,070 shares of the restaurant operator’s stock valued at $81,849,000 after buying an additional 77,244 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Domino’s Pizza by 41.9% in the second quarter. Bank of America Corp DE now owns 275,099 shares of the restaurant operator’s stock valued at $77,625,000 after buying an additional 81,286 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. grew its stake in shares of Domino’s Pizza by 13.3% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 221,225 shares of the restaurant operator’s stock valued at $62,423,000 after buying an additional 25,938 shares in the last quarter. 92.95% of the stock is owned by institutional investors and hedge funds.

Domino’s Pizza Company Profile

Domino's Pizza, Inc, through its subsidiaries, operates as a pizza delivery company in the United States and internationally. It operates through three segments: Domestic Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's Pizza brand name through company-owned and franchised Domino's Pizza stores.

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Analyst Recommendations for Domino`s Pizza (NYSE:DPZ)

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