Domino's Pizza Inc (NASDAQ:DPZ) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Domino's Pizza has a consensus analyst rating of "Moderate Buy" from 31 research firms, with 18 buy ratings, 12 hold ratings, and 1 sell rating. The average 12-month price target is about $402.16.
• The company beat revenue estimates in its latest quarter with about $1.19 billion in sales, but EPS missed consensus by $0.10 at $4.07. Revenue still rose 4.3% year over year, though commentary pointed to pressure from weaker ticket trends and higher costs.
• Recent developments were mixed: analysts issued several price-target updates after earnings, while insider selling and a stock decline added some caution. Domino's also declared a quarterly dividend of $1.99 per share, equal to a 2.5% yield.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report) has received an average rating of "Moderate Buy" from the thirty-one research firms that are covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating and eighteen have issued a buy rating on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $402.1613.

Several brokerages have recently commented on DPZ. Jefferies Financial Group lowered their price target on shares of Domino's Pizza from $400.00 to $350.00 and set a "hold" rating for the company in a research report on Tuesday, April 28th. Wells Fargo & Company boosted their price target on shares of Domino's Pizza from $325.00 to $350.00 and gave the stock an "equal weight" rating in a research note on Tuesday. Morgan Stanley cut their price objective on shares of Domino's Pizza from $395.00 to $370.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Domino's Pizza from $435.00 to $385.00 and set a "buy" rating on the stock in a research note on Thursday, July 9th. Finally, Stifel Nicolaus set a $400.00 target price on shares of Domino's Pizza in a report on Monday, April 27th.

Key Domino's Pizza News

Here are the key news stories impacting Domino's Pizza this week:

• Positive Sentiment: Domino’s reported quarterly revenue of about $1.19 billion, topping estimates and signaling that sales momentum is holding up better than expected. Domino’s Pizza shares rise as quarterly revenue tops estimates
• Positive Sentiment: Analysts responded with multiple price-target updates that still imply meaningful upside, including BMO, Oppenheimer, Wells Fargo and BTIG, which supports the stock after earnings. These Analysts Revise Their Forecasts On Domino’s After Q2 Results
• Positive Sentiment: Some commentary highlighted strong free cash flow and attractive valuation, suggesting investors may view DPZ as inexpensive relative to its earnings power. Domino's Pizza Delivers Strong FCF and FCF Margins - Is DPZ Stock Too Cheap?
• Neutral Sentiment: Domino’s launched S’mores Lava Cakes nationwide, a marketing/menu move that could help traffic but is not a major near-term earnings catalyst. Domino's Pizza (DPZ) Launches S'mores Lava Cakes Nationwide Across The U.S.
• Negative Sentiment: Adjusted EPS missed consensus, and several reports said the outlook remains murky due to weaker ticket trends, promotion pressure and higher costs. Domino's revenue beats estimates as supply-chain business offsets weak demand
• Negative Sentiment: CEO Russell Weiner sold 10,850 shares for about $3.6 million, which may raise some investor caution about insider sentiment. Domino's CEO Russell Weiner Sells 10,850 Shares for $3.6 Million -- Should Investors Be Worried?

Insider Activity at Domino's Pizza

In related news, EVP Kelly E. Garcia sold 487 shares of Domino's Pizza stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $297.01, for a total transaction of $144,643.87. Following the completion of the sale, the executive vice president directly owned 9,352 shares of the company's stock, valued at $2,777,637.52. The trade was a 4.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold 1,950 shares of company stock worth $611,451 over the last ninety days. 0.89% of the stock is owned by insiders.

Hedge Funds Weigh In On Domino's Pizza

Several institutional investors have recently modified their holdings of the stock. Teacher Retirement System of Texas grew its stake in Domino's Pizza by 55.7% in the fourth quarter. Teacher Retirement System of Texas now owns 45,212 shares of the restaurant operator's stock valued at $18,845,000 after acquiring an additional 16,179 shares during the period. Amica Mutual Insurance Co. increased its holdings in shares of Domino's Pizza by 59.8% in the fourth quarter. Amica Mutual Insurance Co. now owns 16,576 shares of the restaurant operator's stock worth $6,909,000 after acquiring an additional 6,203 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Domino's Pizza by 10.2% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 67,117 shares of the restaurant operator's stock worth $28,544,000 after acquiring an additional 6,223 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of Domino's Pizza by 21,977.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 914,672 shares of the restaurant operator's stock worth $381,254,000 after purchasing an additional 910,529 shares during the period. Finally, Fisher Asset Management LLC lifted its holdings in shares of Domino's Pizza by 18.0% during the 4th quarter. Fisher Asset Management LLC now owns 34,632 shares of the restaurant operator's stock valued at $14,436,000 after purchasing an additional 5,282 shares in the last quarter. 94.63% of the stock is currently owned by institutional investors and hedge funds.

Domino's Pizza Stock Down 2.0%

DPZ stock opened at $319.83 on Thursday. The company has a market cap of $10.58 billion, a P/E ratio of 18.14, a PEG ratio of 1.61 and a beta of 0.97. Domino's Pizza has a twelve month low of $282.00 and a twelve month high of $486.68. The business has a fifty day moving average of $309.79 and a 200-day moving average of $356.34.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its quarterly earnings data 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 firm's revenue for the quarter was up 4.3% on a year-over-year basis. During the same period last year, the firm posted $3.81 EPS. As a group, equities research analysts anticipate that Domino's Pizza will post 18.86 earnings per share for the current fiscal year.

Domino's Pizza Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $1.99 dividend. This represents a $7.96 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Tuesday, September 15th. Domino's Pizza's dividend payout ratio (DPR) is currently 45.15%.

Domino's Pizza Company Profile

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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