Papa John's International (NASDAQ:PZZA) Shares Gap Down - What's Next?

Key Points

• Papa John's International shares gapped down, opening at $45.66 after closing at $47.34, with a last traded price of $45.71.
• Analysts have mixed outlooks, with a "buy" rating from Benchmark and a "neutral" rating from Bank of America, while the average target price is $50.00.
• The company recently declared a quarterly dividend of $0.46, representing a 4.0% yield, with a payout ratio of 81.42%.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $47.34, but opened at $45.66. Papa John's International shares last traded at $45.71, with a volume of 95,504 shares changing hands.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on PZZA shares. Benchmark reissued a "buy" rating and set a $60.00 price objective (up previously from $50.00) on shares of Papa John's International in a report on Monday, August 11th. Bank of America reiterated a "neutral" rating and set a $50.00 price target (down previously from $62.00) on shares of Papa John's International in a research note on Monday. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Papa John's International from $40.00 to $46.00 and gave the company a "hold" rating in a research note on Monday, August 11th. Stifel Nicolaus raised their price objective on shares of Papa John's International from $38.00 to $42.00 and gave the stock a "hold" rating in a report on Friday, August 15th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Papa John's International in a research report on Saturday, September 27th. Four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $50.00.

Papa John's International Stock Performance

The company has a market capitalization of $1.53 billion, a price-to-earnings ratio of 20.61, a P/E/G ratio of 2.61 and a beta of 1.10. The business's 50-day simple moving average is $46.43 and its 200-day simple moving average is $43.45.

Papa John's International (NASDAQ:PZZA - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.41 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.07. Papa John's International had a net margin of 3.58% and a negative return on equity of 14.42%. The business had revenue of $529.17 million during the quarter, compared to the consensus estimate of $515.48 million. During the same period in the previous year, the firm posted $0.61 earnings per share. Papa John's International's revenue for the quarter was up 4.2% compared to the same quarter last year. On average, analysts forecast that Papa John's International, Inc. will post 2.19 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, August 29th. Stockholders of record on Monday, August 18th were given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 4.0%. The ex-dividend date was Monday, August 18th. Papa John's International's dividend payout ratio (DPR) is currently 81.42%.

Hedge Funds Weigh In On Papa John's International

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC grew its position in shares of Papa John's International by 24,806.3% during the 1st quarter. GAMMA Investing LLC now owns 87,172 shares of the company's stock worth $3,581,000 after buying an additional 86,822 shares during the period. Rhumbline Advisers grew its holdings in Papa John's International by 1.1% during the first quarter. Rhumbline Advisers now owns 102,399 shares of the company's stock valued at $4,207,000 after purchasing an additional 1,148 shares during the period. Exchange Traded Concepts LLC bought a new stake in Papa John's International in the first quarter valued at approximately $230,000. Janney Montgomery Scott LLC bought a new stake in Papa John's International in the first quarter valued at approximately $509,000. Finally, Bessemer Group Inc. raised its holdings in Papa John's International by 2,758.7% in the first quarter. Bessemer Group Inc. now owns 2,144 shares of the company's stock worth $88,000 after purchasing an additional 2,069 shares during the period.

About Papa John's International

Papa John's International, Inc engages in the operation and franchise of pizza delivery and carryout restaurants. It operates through the following segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations, and All Others. The Domestic Company-Owned Restaurants segment consists of retail sales of pizza and side items, breadsticks, cheese sticks, chicken poppers and wings, dessert items, and canned and bottled beverages.

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