Royal Bank Of Canada Has Lowered Expectations for Domino's Pizza (NASDAQ:DPZ) Stock Price

Key Points

• Royal Bank of Canada lowered Domino’s Pizza’s price target from $350 to $325 while maintaining a “sector perform” rating, implying roughly 10.4% upside from the prior close.
• Analyst sentiment remains mixed: MarketBeat reports a consensus “Hold” rating and average target of $392.58, while Domino’s shares opened at $294.32—near the lower end of their 12-month range.
• Domino’s missed quarterly earnings expectations, reporting $4.07 in EPS versus the $4.17 consensus, while revenue rose 4.3% year over year. Company insiders sold approximately $7.7 million worth of shares during the quarter.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its price target cut by Royal Bank Of Canada from $350.00 to $325.00 in a report released on Monday, Benzinga reports. The firm currently has a "sector perform" rating on the restaurant operator's stock. Royal Bank Of Canada's target price would suggest a potential upside of 10.43% from the company's previous close.

A number of other brokerages have also recently weighed in on DPZ. BTIG Research reissued a "buy" rating and set a $425.00 target price on shares of Domino's Pizza in a report on Tuesday, July 21st. Guggenheim lowered their target price on Domino's Pizza from $440.00 to $325.00 and set a "neutral" rating for the company in a report on Wednesday, September 23rd. BMO Capital Markets cut their price target on Domino's Pizza from $450.00 to $420.00 and set an "outperform" rating on the stock in a report on Tuesday, July 21st. Morgan Stanley dropped their target price on Domino's Pizza from $395.00 to $370.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Domino's Pizza from $380.00 to $350.00 and set an "overweight" rating for the company in a report on Tuesday, September 29th. Sixteen analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $392.58.

Domino's Pizza Trading Down 1.1%

Shares of NASDAQ:DPZ opened at $294.32 on Monday. The firm has a market cap of $9.74 billion, a PE ratio of 16.73, a price-to-earnings-growth ratio of 1.37 and a beta of 0.94. Domino's Pizza has a 12-month low of $282.00 and a 12-month high of $442.35. The company has a fifty day simple moving average of $331.21 and a 200 day simple moving average of $330.89.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last posted its quarterly earnings results on Monday, July 20th. The restaurant operator reported $4.07 EPS for the quarter, missing analysts' consensus estimates of $4.17 by ($0.10). The firm had revenue of $1.19 billion during the quarter. Domino's Pizza had a negative return on equity of 15.15% and a net margin of 11.86%.The business's quarterly revenue was up 4.3% on a year-over-year basis. During the same period last year, the business earned $3.81 EPS. As a group, equities research analysts forecast that Domino's Pizza will post 18.95 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Russell 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 sale, the chief executive officer directly owned 43,829 shares of the company's stock, valued at $14,499,948.07. This represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Kelly Garcia sold 12,430 shares of the firm's stock in a transaction that occurred on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total transaction of $4,002,957.20. Following the sale, the executive vice president owned 9,352 shares of the company's stock, valued at $3,011,718.08. The trade was a 57.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 23,767 shares of company stock worth $7,737,107 over the last quarter. Insiders own 0.89% of the company's stock.

Hedge Funds Weigh In On Domino's Pizza

Hedge funds have recently modified their holdings of the stock. SHP Wealth Management purchased a new position in Domino's Pizza in the 4th quarter worth about $25,000. Rakuten Securities Inc. purchased a new stake in Domino's Pizza during the second quarter valued at about $28,000. Investors Research Corp boosted its holdings in shares of Domino's Pizza by 9,900.0% in the second quarter. Investors Research Corp now owns 100 shares of the restaurant operator's stock worth $30,000 after buying an additional 99 shares during the period. MBM Wealth Consultants LLC acquired a new position in shares of Domino's Pizza in the first quarter worth about $31,000. Finally, Cornerstone Planning Group LLC increased its position in shares of Domino's Pizza by 450.0% in the first quarter. Cornerstone Planning Group LLC now owns 99 shares of the restaurant operator's stock worth $33,000 after acquiring an additional 81 shares in the last quarter. 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 quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino's began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino's serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.

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