Domino's Pizza Group (LON:DOM) Shares Down 17.6% - What's Next?

Key Points

• Domino's Pizza Group's stock price dropped 17.6% to GBX 202.80 ($2.70), with trading volume significantly up at 10,334,658 shares compared to the average of 1,942,622 shares.
• Equities analysts have mixed views, with Shore Capital placing the stock "under review" while Jefferies Financial Group maintained a "buy" rating and set a price target of GBX 380 ($5.05).
• Despite a negative return on equity of 67.25% and a reported EPS of GBX 8.40 ($0.11) in their recent earnings, insiders are still investing, as evidenced by a purchase of 7,500 shares by insider Ian Bull.

Domino's Pizza Group plc (LON:DOM - Get Free Report) shares dropped 17.6% during mid-day trading on Tuesday . The company traded as low as GBX 196.20 ($2.64) and last traded at GBX 202.80 ($2.73). Approximately 10,334,658 shares were traded during trading, an increase of 432% from the average daily volume of 1,942,622 shares. The stock had previously closed at GBX 246 ($3.31).

Wall Street Analysts Forecast Growth

DOM has been the subject of a number of recent analyst reports. Royal Bank Of Canada lowered their target price on shares of Domino's Pizza Group from GBX 350 ($4.71) to GBX 285 ($3.83) and set an "outperform" rating for the company in a research note on Thursday. Deutsche Bank Aktiengesellschaft dropped their price target on Domino's Pizza Group from GBX 400 ($5.38) to GBX 309 ($4.16) and set a "buy" rating on the stock in a research note on Tuesday. Shore Capital restated an "under review" rating on shares of Domino's Pizza Group in a research note on Tuesday. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a GBX 380 ($5.11) target price on shares of Domino's Pizza Group in a research report on Tuesday.

Domino's Pizza Group Stock Performance

The stock has a 50-day simple moving average of GBX 248.82 and a 200 day simple moving average of GBX 269.72. 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 market capitalization of £803.13 million, a PE ratio of 10.55, a P/E/G ratio of 5.24 and a beta of 0.95.

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

Insider Activity

In related news, insider Ian Bull acquired 7,500 shares of Domino's Pizza Group stock in a transaction dated Tuesday, August 5th. The shares were acquired at an average cost of GBX 212 ($2.85) per share, for a total transaction of £15,900 ($21,385.34). 16.56% of the stock is owned by corporate insiders.

Domino's Pizza Group Company Profile

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.