Domino's Pizza (NASDAQ:DPZ) Sets New 1-Year Low - Should You Sell?

Key Points

• Stock hit a new 52-week low — Domino's shares traded as low as $324.86 (last $325.00), remaining well below its 50‑day and 200‑day moving averages of $376.30 and $398.20 respectively.
• Analysts have cut price targets but sentiment is mixed: several firms trimmed targets (e.g., Jefferies to $350, Goldman to $430) and the consensus rating is a Hold with a mean target of $421.35.
• Financials and corporate actions — Q1 EPS missed estimates ($4.13 vs. $4.29) with revenue up 3.5% YoY; the company announced a $1.99 quarterly dividend (2.5% yield), while large investors including Berkshire Hathaway have increased positions.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report) shares reached a new 52-week low during trading on Wednesday . The company traded as low as $324.86 and last traded at $325.0010, with a volume of 159993 shares traded. The stock had previously closed at $331.73.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on DPZ. Jefferies Financial Group cut their price target on Domino's Pizza from $400.00 to $350.00 and set a "hold" rating on the stock in a research note on Tuesday, April 28th. Benchmark decreased their price objective on Domino's Pizza from $465.00 to $430.00 and set a "buy" rating for the company in a research note on Tuesday, April 28th. JPMorgan Chase & Co. dropped their price objective on Domino's Pizza from $450.00 to $440.00 and set an "overweight" rating for the company in a report on Friday, April 24th. The Goldman Sachs Group cut their target price on Domino's Pizza from $480.00 to $430.00 and set a "buy" rating on the stock in a research note on Tuesday, April 28th. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on Domino's Pizza from $480.00 to $435.00 and set a "buy" rating on the stock in a report on Tuesday, April 28th. Seventeen research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $421.35.

Domino's Pizza Trading Down 2.1%

The firm's fifty day moving average price is $376.30 and its 200-day moving average price is $398.20. The company has a market cap of $10.80 billion, a price-to-earnings ratio of 18.69, a price-to-earnings-growth ratio of 1.52 and a beta of 1.02.

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

Domino's Pizza Announces Dividend

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

Insider Activity

In related news, EVP Kelly E. Garcia sold 488 shares of the stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $332.31, for a total transaction 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 represents a 4.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.89% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in DPZ. Northwestern Mutual Wealth Management Co. raised its holdings 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 acquiring an additional 910,529 shares during the period. Norges Bank acquired a new position in Domino's Pizza in the 4th quarter worth $285,116,000. Berkshire Hathaway Inc boosted its stake in Domino's Pizza by 12.3% in the 4th quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator's stock worth $1,396,347,000 after purchasing an additional 368,055 shares during the period. Two Sigma Investments LP raised its stake in shares of Domino's Pizza by 2,845.4% in the 3rd quarter. Two Sigma Investments LP now owns 264,024 shares of the restaurant operator's stock valued at $113,982,000 after purchasing an additional 255,060 shares during the period. Finally, Woodline Partners LP raised its stake in shares of Domino's Pizza by 8,229.8% in the 3rd quarter. Woodline Partners LP now owns 242,314 shares of the restaurant operator's stock valued at $104,609,000 after purchasing an additional 239,405 shares during the period. Institutional investors and hedge funds own 94.63% of the company's stock.

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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