Domino's Pizza (NYSE:DPZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday, January 5th. The firm presently has a $221.00 price objective on the restaurant operator’s stock. Zacks Investment Research‘s target price suggests a potential upside of 4.66% from the company’s previous close.
According to Zacks, “Domino's shares have slightly outpaced the industry in the past one year. 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. In fact, the company’s revenues and earnings surpassed the Zacks Consensus Estimate in each of the trailing six quarters. Markedly, the third quarter of 2017 marked the 26th and 95th consecutive quarter of positive same-store-sales domestically and internationally, respectively. Going forward, Domino's initiatives on the digital front, increased store counts, focus on re-imaging and other sales boosting strategies are expected to help sustain the momentum. Yet, higher costs and negative currency translation are likely to hurt profits. A soft consumer spending environment in the U.S. restaurant space might limit revenue growth too.”
Several other brokerages have also commented on DPZ. Wells Fargo & Co restated a “market perform” rating and issued a $210.00 price target (up previously from $204.00) on shares of Domino's Pizza in a research note on Monday, October 2nd. Maxim Group upgraded shares of Domino's Pizza from a “hold” rating to a “buy” rating and raised their price target for the company from $220.00 to $230.00 in a research note on Thursday, November 2nd. Credit Suisse Group initiated coverage on shares of Domino's Pizza in a research note on Wednesday, October 4th. They set a “neutral” rating and a $200.00 price objective on the stock. Stifel Nicolaus lowered their price objective on shares of Domino's Pizza from $235.00 to $225.00 and set a “buy” rating on the stock in a research note on Tuesday, December 12th. Finally, Jefferies Group reiterated a “hold” rating on shares of Domino's Pizza in a research note on Friday, December 22nd. Seven investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Domino's Pizza presently has an average rating of “Buy” and a consensus target price of $214.65.
Domino's Pizza (NYSE:DPZ) last issued its earnings results on Thursday, October 12th. The restaurant operator reported $1.27 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.22 by $0.05. Domino's Pizza had a net margin of 9.47% and a negative return on equity of 12.59%. The firm had revenue of $643.60 million for the quarter, compared to analysts’ expectations of $627.85 million. During the same quarter last year, the company posted $0.96 earnings per share. Domino's Pizza’s revenue was up 13.6% on a year-over-year basis. equities research analysts expect that Domino's Pizza will post 5.78 earnings per share for the current fiscal year.
In related news, insider Russell J. Weiner sold 7,276 shares of Domino's Pizza stock in a transaction on Tuesday, October 17th. The shares were sold at an average price of $195.00, for a total value of $1,418,820.00. Following the completion of the sale, the insider now owns 17,563 shares of the company’s stock, valued at approximately $3,424,785. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Jeffrey D. Lawrence sold 17,000 shares of Domino's Pizza stock in a transaction on Friday, December 15th. The shares were sold at an average price of $184.87, for a total transaction of $3,142,790.00. Following the completion of the sale, the chief financial officer now directly owns 26,841 shares of the company’s stock, valued at approximately $4,962,095.67. The disclosure for this sale can be found here. Company insiders own 3.57% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Commonwealth Bank of Australia increased its holdings in shares of Domino's Pizza by 25.0% during the 2nd quarter. Commonwealth Bank of Australia now owns 500 shares of the restaurant operator’s stock worth $105,000 after purchasing an additional 100 shares during the period. Toronto Dominion Bank increased its holdings in shares of Domino's Pizza by 12.2% during the 2nd quarter. Toronto Dominion Bank now owns 590 shares of the restaurant operator’s stock worth $125,000 after purchasing an additional 64 shares during the period. Acrospire Investment Management LLC bought a new position in shares of Domino's Pizza during the 2nd quarter worth about $127,000. FNY Partners Fund LP bought a new position in shares of Domino's Pizza during the 3rd quarter worth about $158,000. Finally, Synovus Financial Corp bought a new position in shares of Domino's Pizza during the 3rd quarter worth about $206,000.
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About Domino's Pizza
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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