Domino's Pizza (NASDAQ:DPZ) Sets New 12-Month Low - Here's What Happened

Key Points

• Domino's Pizza shares hit a new 52-week low, falling to as low as $297.48 intraday before last trading around $303.79.
• Analysts have lowered their price targets following recent weakness, though the stock’s overall consensus rating remains “Hold” with a consensus target price of $419.74.
• Recent earnings missed expectations: Domino’s reported $4.13 EPS versus the $4.29 estimate, even as quarterly revenue rose 3.5% year over year to $1.15 billion.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $297.48 and last traded at $303.7930, with a volume of 80385 shares changing hands. The stock had previously closed at $302.29.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Royal Bank Of Canada decreased their price objective on shares of Domino's Pizza from $400.00 to $350.00 and set a "sector perform" rating for the company in a report on Tuesday, April 28th. Northcoast Research cut their price target on shares of Domino's Pizza from $525.00 to $445.00 and set a "buy" rating on the stock in a report on Tuesday, April 28th. JPMorgan Chase & Co. dropped their price target on shares of Domino's Pizza from $450.00 to $440.00 and set an "overweight" rating on the stock in a research note on Friday, April 24th. BMO Capital Markets dropped their price target on shares of Domino's Pizza from $500.00 to $450.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 28th. Finally, William Blair set a $540.00 price target on shares of Domino's Pizza in a research note on Monday, February 23rd. Seventeen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $419.74.

Domino's Pizza Stock Performance

The firm has a market cap of $10.10 billion, a price-to-earnings ratio of 17.50, a PEG ratio of 1.40 and a beta of 1.02. The business's 50-day moving average is $361.95 and its 200-day moving average is $392.35.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last posted its quarterly earnings data 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). The company had revenue of $1.15 billion during the quarter. Domino's Pizza had a net margin of 11.89% and a negative return on equity of 15.04%. The company's quarterly revenue was up 3.5% on a year-over-year basis. During the same period in the previous year, the firm earned $4.33 EPS. Equities research analysts expect that Domino's Pizza Inc will post 19.15 EPS for the current fiscal year.

Domino's Pizza Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a $1.99 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $7.96 dividend on an annualized basis and a yield of 2.6%. Domino's Pizza's payout ratio is presently 45.83%.

Insider Activity

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

Hedge Funds Weigh In On Domino's Pizza

Institutional investors and hedge funds have recently modified their holdings of the business. Huntleigh Advisors Inc. lifted its holdings in shares of Domino's Pizza by 5.0% in the fourth quarter. Huntleigh Advisors Inc. now owns 530 shares of the restaurant operator's stock worth $221,000 after acquiring an additional 25 shares during the last quarter. Lafayette Investments Inc. grew its position in shares of Domino's Pizza by 2.8% during the 3rd quarter. Lafayette Investments Inc. now owns 955 shares of the restaurant operator's stock worth $412,000 after buying an additional 26 shares during the period. Ritholtz Wealth Management lifted its holdings in shares of Domino's Pizza by 1.1% in the 3rd quarter. Ritholtz Wealth Management now owns 2,382 shares of the restaurant operator's stock worth $1,028,000 after purchasing an additional 27 shares in the last quarter. Parallel Advisors LLC lifted its holdings in shares of Domino's Pizza by 2.9% in the 3rd quarter. Parallel Advisors LLC now owns 965 shares of the restaurant operator's stock worth $417,000 after purchasing an additional 27 shares in the last quarter. Finally, Bessemer Group Inc. lifted its holdings in shares of Domino's Pizza by 1.2% in the 3rd quarter. Bessemer Group Inc. now owns 2,317 shares of the restaurant operator's stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. 94.63% of the stock is currently 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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