Dine Brands Global (NYSE:DIN) Share Price Passes Above Two Hundred Day Moving Average Following Weak Earnings

Key Points

• Shares briefly climbed above the 200-day moving average ($30.55), trading as high as $31.00 after the earnings release even though the company missed EPS at $0.88 vs. $1.00 consensus while beating revenue at $225.2M.
• Dine Brands paid a quarterly dividend of $0.19 (annualized $0.76), implying a 2.8% dividend yield and a payout ratio of 78.35%.
• The stock carries a consensus "Hold" rating with a $29.50 target; insiders added shares (director purchase) and institutional ownership is very high (~92.8%) with several large funds increasing positions recently.

Shares of Dine Brands Global, Inc. (NYSE:DIN - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday following a better than expected earnings announcement. The stock has a two hundred day moving average of $30.55 and traded as high as $31.00. Dine Brands Global shares last traded at $27.3040, with a volume of 861,845 shares traded.

The restaurant operator reported $0.88 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.00 by ($0.12). The business had revenue of $225.20 million for the quarter, compared to analysts' expectations of $222.08 million. Dine Brands Global had a negative return on equity of 27.12% and a net margin of 1.88%.The business's revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.03 EPS.

Dine Brands Global Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Wednesday, March 18th were given a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Wednesday, March 18th. Dine Brands Global's dividend payout ratio (DPR) is 78.35%.

Wall Street Analyst Weigh In

DIN has been the topic of several research reports. Zacks Research raised Dine Brands Global from a "strong sell" rating to a "hold" rating in a report on Thursday, April 2nd. Barclays cut their price target on Dine Brands Global from $40.00 to $30.00 and set an "equal weight" rating for the company in a report on Thursday, February 26th. Mizuho cut their price target on Dine Brands Global from $34.00 to $30.00 and set a "neutral" rating for the company in a report on Thursday, April 2nd. KeyCorp reaffirmed a "sector weight" rating on shares of Dine Brands Global in a report on Thursday, April 2nd. Finally, Benchmark reissued a "hold" rating on shares of Dine Brands Global in a research note on Monday, March 2nd. Eight equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Dine Brands Global currently has a consensus rating of "Hold" and a consensus target price of $29.50.

Insider Transactions at Dine Brands Global

In related news, Director Douglas M. Pasquale bought 2,000 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The stock was purchased at an average cost of $28.25 per share, for a total transaction of $56,500.00. Following the completion of the acquisition, the director owned 31,469 shares in the company, valued at approximately $888,999.25. This trade represents a 6.79% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders acquired 6,000 shares of company stock valued at $173,310 in the last ninety days. Company insiders own 6.73% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in Dine Brands Global by 10.8% during the 3rd quarter. Vanguard Group Inc. now owns 1,041,335 shares of the restaurant operator's stock worth $25,742,000 after buying an additional 101,304 shares during the last quarter. Cibc World Market Inc. lifted its holdings in Dine Brands Global by 14.0% during the 4th quarter. Cibc World Market Inc. now owns 821,184 shares of the restaurant operator's stock worth $26,393,000 after buying an additional 101,054 shares during the last quarter. Millennium Management LLC lifted its holdings in Dine Brands Global by 51.2% during the 1st quarter. Millennium Management LLC now owns 507,801 shares of the restaurant operator's stock worth $11,817,000 after buying an additional 172,013 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Dine Brands Global by 16.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 377,399 shares of the restaurant operator's stock worth $12,130,000 after buying an additional 54,506 shares during the last quarter. Finally, Two Sigma Investments LP lifted its holdings in Dine Brands Global by 3.8% during the 3rd quarter. Two Sigma Investments LP now owns 353,292 shares of the restaurant operator's stock worth $8,733,000 after buying an additional 12,821 shares during the last quarter. 92.83% of the stock is currently owned by hedge funds and other institutional investors.

Dine Brands Global Trading Down 3.0%

The firm has a market capitalization of $354.41 million, a PE ratio of 28.15 and a beta of 0.94. The company has a fifty day moving average price of $28.22 and a two-hundred day moving average price of $30.55.

Dine Brands Global Company Profile

Dine Brands Global, Inc is a leading franchisor and operator of full‐service restaurants in the casual dining and breakfast segments. The company's primary brands include IHOP®, known for its wide variety of breakfast offerings and pancakes, and Applebee's Neighborhood Grill + Bar®, a casual dining concept featuring a range of American entrées, appetizers and cocktails. Through its franchise model, Dine Brands works with independent restaurant owners to develop, market and support both domestic and international locations.

The origins of Dine Brands Global date back to the founding of the International House of Pancakes (IHOP) in 1958 in California.

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