Domino's Pizza Group (LON:DOM) Shares Down 17.6% - Should You Sell?

Key Points

• Domino's Pizza Group's shares fell sharply by 17.6% on Tuesday, with trading volumes increasing by 432% compared to average daily volumes.
• Analysts have mixed opinions, with Jefferies Financial Group maintaining a "buy" rating and a price target of GBX 380 while Shore Capital is currently "under review."
• Insider Ian Bull bought 7,500 shares at an average price of GBX 212 in a display of confidence, while insider ownership stands at 16.56%.

Domino's Pizza Group plc (LON:DOM - Get Free Report)'s stock price dropped 17.6% on Tuesday . The company traded as low as GBX 196.20 ($2.64) and last traded at GBX 202.80 ($2.73). Approximately 10,334,716 shares changed hands during trading, an increase of 432% from the average daily volume of 1,942,623 shares. The stock had previously closed at GBX 246 ($3.31).

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Royal Bank Of Canada reduced their price target on shares of Domino's Pizza Group from GBX 350 ($4.71) to GBX 285 ($3.83) and set an "outperform" rating on the stock in a research report on Thursday. Jefferies Financial Group reiterated a "buy" rating and set a GBX 380 ($5.11) price objective on shares of Domino's Pizza Group in a research note on Tuesday. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Domino's Pizza Group from GBX 400 ($5.38) to GBX 309 ($4.16) and set a "buy" rating for the company in a report on Tuesday. Finally, Shore Capital reiterated an "under review" rating on shares of Domino's Pizza Group in a report on Tuesday.

Domino's Pizza Group Trading Down 0.4%

The firm has a market capitalization of £803.13 million, a PE ratio of 10.55, a price-to-earnings-growth ratio of 5.24 and a beta of 0.95. The company has a debt-to-equity ratio of -562.33, a current ratio of 0.86 and a quick ratio of 0.83. The company has a fifty day moving average of GBX 249.92 and a 200-day moving average of GBX 270.47.

Domino's Pizza Group (LON:DOM - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported GBX 8.40 ($0.11) earnings per share for the quarter. Domino's Pizza Group had a negative return on equity of 67.25% and a net margin of 11.44%. On average, sell-side analysts anticipate that Domino's Pizza Group plc will post 23.3281005 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Ian Bull purchased 7,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were acquired at an average price of GBX 212 ($2.85) per share, for a total transaction of £15,900 ($21,382.46). Corporate insiders own 16.56% of the company's stock.

About Domino's Pizza Group

Domino's Pizza is the UK's leading pizza brand and a major player in the Republic of Ireland. We are part of the global Domino's system, the biggest pizza delivery operator in the world. We hold the exclusive master franchise rights in the UK & Ireland under a long term agreement with Domino's Pizza International Franchising Inc, the international arm of Domino's Pizza Inc, which owns the Domino's brand.