Investors Buy Large Volume of Call Options on Papa John's International (NASDAQ:PZZA)

Key Points

• Options activity surged in Papa John’s International, with investors purchasing 5,989 call options—about 55% above the typical daily volume.
• Analyst sentiment remained cautious: MarketBeat reported a consensus “Reduce” rating and a $36.38 price target, with recent downgrades from several firms.
• PZZA shares rose 5.8% to $31.63, while the company’s latest quarterly results missed expectations and revenue declined 7.7% year over year. Papa John’s also paid a quarterly dividend of $0.46, implying a 5.8% annualized yield.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) was the target of unusually large options trading on Monday. Stock investors purchased 5,989 call options on the company. This is an increase of approximately 55% compared to the typical daily volume of 3,859 call options.

Wall Street Analyst Weigh In

Several brokerages have weighed in on PZZA. Weiss Ratings cut Papa John's International from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 18th. Bank of America reissued an "underperform" rating and set a $34.00 target price (down from $42.00) on shares of Papa John's International in a report on Monday, July 13th. Zacks Research cut Papa John's International from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Piper Sandler cut their price objective on shares of Papa John's International from $32.00 to $30.00 and set a "neutral" rating for the company in a research report on Friday, May 8th. Finally, Benchmark reduced their price objective on shares of Papa John's International from $50.00 to $45.00 and set a "buy" rating on the stock in a research note on Friday, May 8th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $36.38.

Hedge Funds Weigh In On Papa John's International

A number of institutional investors have recently added to or reduced their stakes in PZZA. Marshall Wace LLP acquired a new position in shares of Papa John's International during the fourth quarter worth $12,969,000. Quinn Opportunity Partners LLC bought a new stake in shares of Papa John's International in the fourth quarter worth $12,767,000. Earnest Partners LLC increased its holdings in Papa John's International by 19.6% in the fourth quarter. Earnest Partners LLC now owns 1,947,248 shares of the company's stock valued at $74,950,000 after purchasing an additional 318,816 shares during the period. Gumshoe Capital Management LLC bought a new position in Papa John's International during the 4th quarter worth $10,034,000. Finally, Balyasny Asset Management L.P. acquired a new position in Papa John's International during the 4th quarter worth about $8,729,000.

Papa John's International Stock Up 5.8%

Shares of PZZA traded up $1.73 during midday trading on Monday, hitting $31.63. The company's stock had a trading volume of 421,443 shares, compared to its average volume of 1,147,035. Papa John's International has a one year low of $29.55 and a one year high of $55.74. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 38.12, a price-to-earnings-growth ratio of 1.95 and a beta of 1.13. The company's fifty day simple moving average is $33.41 and its two-hundred day simple moving average is $34.11.

Papa John's International (NASDAQ:PZZA - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.08). Papa John's International had a negative return on equity of 10.71% and a net margin of 1.37%.The business had revenue of $478.61 million for the quarter, compared to the consensus estimate of $485.51 million. During the same quarter in the prior year, the company earned $0.36 earnings per share. Papa John's International's quarterly revenue was down 7.7% compared to the same quarter last year. On average, research analysts predict that Papa John's International will post 1.48 earnings per share for the current year.

Papa John's International Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Monday, May 18th were paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date was Monday, May 18th. Papa John's International's dividend payout ratio (DPR) is presently 221.69%.

About Papa John's International

Papa John's International, Inc is a leading American pizza restaurant chain known for its focus on high-quality ingredients and consistent product offerings. Founded in 1984 by John Schnatter in Jeffersonville, Indiana, the company has grown to operate thousands of restaurants across the United States and in more than 40 international markets. Papa John's restaurants are primarily franchised, supported by a network of corporate-owned outlets that together drive brand standards, operational guidance and marketing efforts.

The core menu at Papa John's centers on a variety of hand-tossed and pan pizzas made with a signature stone-baked crust and topped with real cheese, vine-ripened tomato sauce and premium meats and vegetables.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source