Domino's Pizza (NASDAQ:DPZ) Stock Price Target Cut by JPMorgan Chase & Co.

Key Points

• JPMorgan lowered Domino’s Pizza’s price target from $380 to $350 while maintaining an “overweight” rating, implying 17.26% upside from the prior close.
• Analyst sentiment is mixed: 16 analysts rate the stock a Buy, 14 a Hold and one a Sell, producing an overall “Hold” consensus and an average target of $393.39.
• Domino’s shares recently traded at $298.49, well below their 12-month high of $442.35. The company’s latest quarterly EPS of $4.07 missed estimates, although revenue rose 4.3% year over year.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its target price decreased by analysts at JPMorgan Chase & Co. from $380.00 to $350.00 in a report issued on Tuesday, Benzinga reports. The firm currently has an "overweight" rating on the restaurant operator's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 17.26% from the stock's previous close.

DPZ has been the subject of a number of other reports. Loop Capital reiterated a "hold" rating and issued a $353.00 target price on shares of Domino's Pizza in a research report on Monday, August 10th. Seaport Research Partners assumed coverage on shares of Domino's Pizza in a research report on Wednesday, September 16th. They set a "neutral" rating on the stock. BTIG Research reiterated a "buy" rating and issued a $425.00 price objective on shares of Domino's Pizza in a report on Tuesday, July 21st. Robert W. Baird reiterated a "neutral" rating and issued a $350.00 price objective on shares of Domino's Pizza in a report on Monday, August 24th. Finally, Benchmark reissued a "buy" rating on shares of Domino's Pizza in a research note on Tuesday, July 21st. Sixteen analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $393.39.

Domino's Pizza Stock Performance

Shares of DPZ traded up $6.22 during trading hours on Tuesday, hitting $298.49. 106,949 shares of the stock were exchanged, compared to its average volume of 911,321. Domino's Pizza has a 12-month low of $282.00 and a 12-month high of $442.35. The company has a market cap of $9.87 billion, a price-to-earnings ratio of 16.86, a price-to-earnings-growth ratio of 1.34 and a beta of 0.94. The stock's 50-day moving average price is $333.38 and its two-hundred day moving average price is $333.63.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its quarterly earnings data on Monday, July 20th. The restaurant operator reported $4.07 earnings per share for the quarter, missing analysts' consensus estimates of $4.17 by ($0.10). Domino's Pizza had a net margin of 11.86% and a negative return on equity of 15.15%. The firm had revenue of $1.19 billion during the quarter. During the same quarter in the prior year, the firm earned $3.81 EPS. The business's quarterly revenue was up 4.3% compared to the same quarter last year. On average, research analysts expect that Domino's Pizza will post 18.95 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Russell J. Weiner sold 10,850 shares of the stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $330.83, for a total transaction of $3,589,505.50. Following the completion of the transaction, the chief executive officer owned 43,829 shares of the company's stock, valued at approximately $14,499,948.07. This trade represents a 19.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kelly E. Garcia sold 12,430 shares of Domino's Pizza stock in a transaction that occurred on Wednesday, July 22nd. The shares were sold at an average price of $322.04, for a total transaction of $4,002,957.20. Following the completion of the sale, the executive vice president owned 9,352 shares of the company's stock, valued at $3,011,718.08. This trade represents a 57.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,767 shares of company stock worth $7,737,107 over the last three months. Insiders own 0.89% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Berkshire Hathaway Inc grew its position in Domino's Pizza by 12.3% in the 4th quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator's stock valued at $1,396,347,000 after buying an additional 368,055 shares during the last quarter. Soroban Capital Partners LP purchased a new position in Domino's Pizza during the 1st quarter worth $895,251,000. T. Rowe Price Investment Management Inc. raised its position in Domino's Pizza by 0.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,008,278 shares of the restaurant operator's stock worth $837,091,000 after buying an additional 7,497 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Domino's Pizza in the 2nd quarter worth $715,704,000. Finally, Norges Bank acquired a new stake in shares of Domino's Pizza in the 4th quarter worth $285,116,000. 94.63% of the stock is currently owned by institutional investors and hedge funds.

Domino's Pizza Company Profile

Domino's Pizza, Inc is a global restaurant company that operates and franchises stores under the Domino's brand. Its core business centers on the preparation and delivery of made-to-order pizzas, with carryout and digital ordering also playing important roles in its customer service model.

The company's menu includes a variety of pizzas, crusts and toppings, along with side dishes, chicken, sandwiches, desserts and beverages. Domino's also operates a supply chain business that produces and distributes food, equipment and other products to company-owned and franchised stores, supporting consistency across its restaurant network.

Founded in 1960 in Ypsilanti, Michigan, Domino's was initially known as Dominick's before adopting its current name in 1965.

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