Papa John's International (NASDAQ:PZZA) Hits New 12-Month Low - Time to Sell?

Key Points

• Papa John’s shares hit a new 52-week low, trading as low as $27.32 and falling 16.6%; the stock’s market capitalization is approximately $816 million.
• Analyst sentiment is predominantly negative, with a consensus rating of “Reduce” and an average price target of $36.38. Recent firms lowered targets or downgraded the stock, including Bank of America’s “underperform” rating and Zacks Research’s “strong sell” call.
• The company slightly exceeded quarterly earnings and revenue estimates, reporting $0.46 in EPS and $482.4 million in revenue, but revenue declined 8.8% year over year and profitability remained weak, with a 1.37% net margin.

Shares of Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) hit a new 52-week low during trading on Thursday . The stock traded as low as $27.32 and last traded at $26.4020, with a volume of 285180 shares trading hands. The stock had previously closed at $29.75.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of Papa John's International from a "sell" rating to a "hold" rating in a research note on Sunday, July 26th. Mizuho lowered their target price on shares of Papa John's International from $33.00 to $32.00 and set a "neutral" rating on the stock in a research note on Friday, July 31st. Weiss Ratings downgraded shares of Papa John's International from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 18th. Zacks Research lowered shares of Papa John's International from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Finally, 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 research report on Monday, July 13th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $36.38.

Papa John's International Trading Down 16.6%

The stock has a fifty day simple moving average of $33.25 and a 200-day simple moving average of $33.96. The stock has a market cap of $816.41 million, a price-to-earnings ratio of 30.33, a price-to-earnings-growth ratio of 2.01 and a beta of 1.13.

Papa John's International (NASDAQ:PZZA - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.45 by $0.01. Papa John's International had a negative return on equity of 10.71% and a net margin of 1.37%.The company had revenue of $482.40 million during the quarter, compared to analyst estimates of $481.25 million. During the same period in the previous year, the company earned $0.41 earnings per share. The company's quarterly revenue was down 8.8% compared to the same quarter last year. Sell-side analysts forecast that Papa John's International, Inc. will post 1.47 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Papa John's International

Several large investors have recently bought and sold shares of the stock. Marshall Wace LLP acquired a new position in shares of Papa John's International in the fourth quarter valued at $12,969,000. Quinn Opportunity Partners LLC acquired a new stake in Papa John's International during the fourth quarter worth $12,767,000. Earnest Partners LLC boosted its stake in Papa John's International by 19.6% during the fourth quarter. Earnest Partners LLC now owns 1,947,248 shares of the company's stock worth $74,950,000 after buying an additional 318,816 shares in the last quarter. Gumshoe Capital Management LLC bought a new stake in Papa John's International in the 4th quarter valued at $10,034,000. Finally, Balyasny Asset Management L.P. bought a new stake in Papa John's International in the 4th quarter valued at $8,729,000.

Papa John's International Company Profile

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.

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