Domino's Pizza (NASDAQ:DPZ) Hits New 1-Year Low - Here's Why

Key Points

• Domino’s Pizza shares hit a new 52-week low, falling to as low as $297.20 amid recent weakness and trading well below both its 50-day and 200-day moving averages.
• Analysts have turned more cautious, with several firms cutting price targets; the stock now carries a consensus “Moderate Buy” rating and an average target price of $418.13.
• Recent earnings came in below expectations, as Domino’s reported $4.13 EPS versus the $4.29 estimate, even though revenue rose 3.5% year over year; the company also continues to pay a quarterly dividend yielding about 2.7%.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $297.20 and last traded at $299.1440, with a volume of 122600 shares traded. The stock had previously closed at $312.47.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on DPZ shares. Wells Fargo & Company decreased their price objective on shares of Domino's Pizza from $400.00 to $350.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 28th. Weiss Ratings cut shares of Domino's Pizza from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, May 29th. UBS Group reduced their target price on Domino's Pizza from $480.00 to $425.00 and set a "buy" rating on the stock in a report on Tuesday, April 28th. Gordon Haskett decreased their price target on Domino's Pizza from $440.00 to $380.00 and set a "buy" rating on the stock in a research report on Tuesday, April 28th. Finally, Citigroup dropped their price target on Domino's Pizza from $425.00 to $365.00 and set a "neutral" rating for the company in a report on Tuesday, April 28th. Seventeen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Domino's Pizza currently has an average rating of "Moderate Buy" and an average target price of $418.13.

Domino's Pizza Price Performance

The stock has a 50-day moving average of $329.32 and a 200 day moving average of $375.79. The stock has a market capitalization of $9.84 billion, a price-to-earnings ratio of 17.06, a price-to-earnings-growth ratio of 1.45 and a beta of 0.98.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last issued its earnings results on Monday, April 27th. The restaurant operator reported $4.13 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter. During the same quarter in the previous year, the business earned $4.33 earnings per share. The company's revenue was up 3.5% on a year-over-year basis. Sell-side analysts anticipate that Domino's Pizza Inc will post 19.07 earnings per share for the current fiscal year.

Domino's Pizza Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a $1.99 dividend. This represents a $7.96 annualized dividend and a yield of 2.7%. The ex-dividend date is Monday, June 15th. Domino's Pizza's dividend payout ratio is currently 45.83%.

Insider Transactions at Domino's Pizza

In other Domino's Pizza news, EVP Kelly E. Garcia sold 488 shares of Domino's Pizza stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $313.16, for a total transaction of $152,822.08. Following the completion of the sale, the executive vice president owned 9,352 shares of the company's stock, valued at approximately $2,928,672.32. The trade was a 4.96% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 1,463 shares of company stock valued at $466,807 over the last quarter. 0.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Berkshire Hathaway Inc lifted its stake in Domino's Pizza by 13.2% in the third quarter. Berkshire Hathaway Inc now owns 2,981,945 shares of the restaurant operator's stock valued at $1,287,335,000 after acquiring an additional 348,077 shares during the last quarter. Marshfield Associates increased its stake in shares of Domino's Pizza by 4.0% during the 3rd quarter. Marshfield Associates now owns 744,515 shares of the restaurant operator's stock worth $321,415,000 after purchasing an additional 28,765 shares during the last quarter. Teacher Retirement System of Texas increased its stake in shares of Domino's Pizza by 55.7% during the 4th quarter. Teacher Retirement System of Texas now owns 45,212 shares of the restaurant operator's stock worth $18,845,000 after purchasing an additional 16,179 shares during the last quarter. Amica Mutual Insurance Co. raised its holdings in shares of Domino's Pizza by 59.8% in the 4th quarter. Amica Mutual Insurance Co. now owns 16,576 shares of the restaurant operator's stock valued at $6,909,000 after purchasing an additional 6,203 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Domino's Pizza by 10.2% during 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 purchasing an additional 6,223 shares during the period. 94.63% of the stock is currently owned by institutional investors.

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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