Dominos Pizza UK (OTCMKTS:DPUKY) Trading 5.6% Higher - Should You Buy?

Key Points

• Dominos Pizza UK shares surged by 5.6% on Friday, reaching a price of $5.33 after a significant increase in trading volume.
• Peel Hunt upgraded the stock to a "strong-buy" rating, contributing to an average rating of "Moderate Buy" from analysts.
• The company initiated a share buyback program, indicating potential undervaluation of its shares, despite previously cutting its dividend yield to 434.0%.

Dominos Pizza UK (OTCMKTS:DPUKY - Get Free Report) shares traded up 5.6% on Friday . The stock traded as high as $5.33 and last traded at $5.33. 48,827 shares were traded during trading, an increase of 199% from the average session volume of 16,340 shares. The stock had previously closed at $5.05.

Analyst Upgrades and Downgrades

Separately, Peel Hunt raised Dominos Pizza UK to a "strong-buy" rating in a report on Thursday, September 18th. One equities research analyst has rated the stock with a Strong Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy".

Dominos Pizza UK Trading Up 4.1%

The firm has a fifty day simple moving average of $5.48 and a 200-day simple moving average of $6.50.

Dominos Pizza UK Cuts Dividend

The company also recently declared a dividend, which was paid on Tuesday, October 14th. Stockholders of record on Monday, August 18th were paid a dividend of $0.0765 per share. This represents a dividend yield of 434.0%. The ex-dividend date of this dividend was Friday, August 15th.

Dominos Pizza UK declared that its board has approved a share buyback program on Monday, September 1st that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its shares are undervalued.

About Dominos Pizza UK

Domino's Pizza Group plc owns, operates, and franchises Domino's Pizza stores. It operates stores in the United Kingdom and the Republic of Ireland, as well as leases its stores. The company was formerly known as Domino's Pizza UK & IRL plc and changed its name to Domino's Pizza Group plc in May 2012.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.