Domino's Pizza Inc (NASDAQ:DPZ) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Domino's Pizza received a consensus "Hold" rating from 31 brokerages, with 17 buys, 12 holds, and 2 sells. The average 12-month price target is about $421.35.
• Several analysts recently cut price targets on DPZ, including DA Davidson, Wells Fargo, Deutsche Bank, and BTIG, reflecting more cautious sentiment even as some firms kept buy ratings.
• The company reported Q1 earnings of $4.13 per share, missing expectations of $4.29, while revenue rose 3.5% year over year to $1.15 billion. Domino's also announced a quarterly dividend of $1.99 per share, yielding about 2.5% annually.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report) has earned an average recommendation of "Hold" from the thirty-one brokerages that are covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and seventeen have issued a buy rating on the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $421.3548.

A number of research firms recently weighed in on DPZ. DA Davidson dropped their price target on Domino's Pizza from $436.00 to $423.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Wells Fargo & Company dropped their price target on Domino's Pizza from $400.00 to $350.00 and set an "equal weight" rating for the company in a report on Tuesday, April 28th. William Blair set a $540.00 price target on Domino's Pizza in a report on Monday, February 23rd. Deutsche Bank Aktiengesellschaft dropped their price target on Domino's Pizza from $480.00 to $435.00 and set a "buy" rating for the company in a report on Tuesday, April 28th. Finally, BTIG Research dropped their price target on Domino's Pizza from $500.00 to $450.00 and set a "buy" rating for the company in a report on Monday, April 27th.

Domino's Pizza Price Performance

Domino's Pizza stock opened at $323.48 on Friday. The company has a market capitalization of $10.76 billion, a PE ratio of 18.62, a price-to-earnings-growth ratio of 1.53 and a beta of 1.02. Domino's Pizza has a one year low of $321.27 and a one year high of $499.08. The business has a 50 day simple moving average of $373.16 and a 200 day simple moving average of $396.96.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last released its quarterly earnings results on Monday, April 27th. The restaurant operator reported $4.13 earnings per share for the quarter, missing analysts' consensus estimates of $4.29 by ($0.16). Domino's Pizza had a net margin of 11.89% and a negative return on equity of 15.04%. The business had revenue of $1.15 billion for the quarter. During the same period last year, the company earned $4.33 earnings per share. Domino's Pizza's quarterly revenue was up 3.5% on a year-over-year basis. Equities analysts anticipate that Domino's Pizza will post 19.22 earnings per share for the current fiscal year.

Domino's Pizza Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $1.99 per share. This represents a $7.96 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Monday, June 15th. Domino's Pizza's dividend payout ratio (DPR) is currently 45.83%.

Insiders Place Their Bets

In other news, EVP Kelly E. Garcia sold 488 shares of Domino's Pizza stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $332.31, for a total value of $162,167.28. Following the completion of the sale, the executive vice president directly owned 9,352 shares of the company's stock, valued at approximately $3,107,763.12. This trade represents a 4.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.89% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Domino's Pizza

Hedge funds and other institutional investors have recently made changes to their positions in the company. Berkshire Hathaway Inc grew its stake in shares of Domino's Pizza by 13.2% during the third quarter. Berkshire Hathaway Inc now owns 2,981,945 shares of the restaurant operator's stock worth $1,287,335,000 after purchasing an additional 348,077 shares during the period. Marshfield Associates lifted its holdings in Domino's Pizza by 4.0% during the third quarter. Marshfield Associates now owns 744,515 shares of the restaurant operator's stock worth $321,415,000 after acquiring an additional 28,765 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in Domino's Pizza by 1.8% during the third quarter. Principal Financial Group Inc. now owns 1,762,568 shares of the restaurant operator's stock worth $760,939,000 after acquiring an additional 30,647 shares in the last quarter. Mediolanum International Funds Ltd lifted its holdings in Domino's Pizza by 209.6% during the third quarter. Mediolanum International Funds Ltd now owns 4,155 shares of the restaurant operator's stock worth $1,805,000 after acquiring an additional 2,813 shares in the last quarter. Finally, Machina Capital S.A.S. bought a new position in Domino's Pizza during the third quarter worth about $1,557,000. 94.63% of the stock is owned by institutional investors and hedge funds.

About Domino's Pizza

Domino's Pizza, Inc NASDAQ: DPZ is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand‐crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino's has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino's Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino's has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.

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