Papa John's International (NASDAQ:PZZA) Hits New 52-Week Low - Here's Why

Key Points

• Papa John’s shares fell to a new 52-week low of $23.14, down from the prior close of $24.26, amid continued weakness in the stock.
• Analyst sentiment has deteriorated, with several firms cutting ratings or price targets. The stock has a consensus “Reduce” rating, with an average price target of $32.00.
• Although quarterly EPS and revenue slightly exceeded estimates, revenue declined 8.8% year over year; the company also reported a slim 1.34% net margin and negative 10.98% return on equity.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The stock traded as low as $23.14 and last traded at $23.14, with a volume of 1084963 shares. The stock had previously closed at $24.26.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on PZZA. Weiss Ratings downgraded Papa John's International from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, August 7th. Mizuho dropped their price objective 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. Benchmark lowered shares of Papa John's International from a "buy" rating to a "hold" rating in a report on Friday, August 7th. Stephens reiterated an "equal weight" rating and issued a $24.00 target price (down from $38.00) on shares of Papa John's International in a research note on Friday, August 7th. Finally, Zacks Research downgraded shares of Papa John's International from a "hold" rating to a "strong sell" rating in a report on Monday, July 13th. Six equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $32.00.

Papa John's International Stock Performance

The stock has a market cap of $765.77 million, a PE ratio of 29.44, a price-to-earnings-growth ratio of 2.47 and a beta of 1.13. The company has a 50 day moving average of $32.04 and a two-hundred day moving average of $33.33.

Papa John's International (NASDAQ:PZZA - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.01. The company had revenue of $482.40 million for the quarter, compared to the consensus estimate of $481.25 million. Papa John's International had a negative return on equity of 10.98% and a net margin of 1.34%.Papa John's International's revenue for the quarter was down 8.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.41 earnings per share. As a group, equities research analysts anticipate that Papa John's International, Inc. will post 1.25 EPS for the current year.

Institutional Investors Weigh In On Papa John's International

Institutional investors have recently added to or reduced their stakes in the stock. Persistent Asset Partners Ltd acquired a new position in Papa John's International during the second quarter worth $33,000. Lazard Asset Management LLC acquired a new stake in shares of Papa John's International in the second quarter valued at about $59,000. Skylands Capital LLC purchased a new stake in shares of Papa John's International during the first quarter worth about $65,000. Leonteq Securities AG purchased a new stake in shares of Papa John's International during the fourth quarter worth about $71,000. Finally, PNC Financial Services Group Inc. raised its position in shares of Papa John's International by 42.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,230 shares of the company's stock worth $72,000 after purchasing an additional 670 shares during the last quarter.

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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