Papa John's International (NASDAQ:PZZA) Shares Up 18.5% - Here's What Happened

Key Points

• Papa John's International shares surged by 18.5%, closing at $49.29, following a day of trading that saw a significant drop in volume compared to its average.
• Financial analysts have mixed sentiments, with Bank of America lowering its target price to $50.00, while Benchmark raised its target to $60.00, indicating a range of ratings from Buy to Hold.
• The company reported a quarterly earnings per share of $0.41, surpassing estimates, and had a dividend yield of 4.0%, reaffirming its shareholder value commitment.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report)'s stock price traded up 18.5% during trading on Monday . The company traded as high as $42.88 and last traded at $49.29. 318,145 shares traded hands during trading, a decline of 75% from the average session volume of 1,258,541 shares. The stock had previously closed at $41.59.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Bank of America reaffirmed a "neutral" rating and set a $50.00 target price (down from $62.00) on shares of Papa John's International in a research report on Monday, October 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Papa John's International in a research report on Wednesday, October 8th. Stifel Nicolaus increased their price objective on shares of Papa John's International from $38.00 to $42.00 and gave the company a "hold" rating in a research note on Friday, August 15th. Benchmark reiterated a "buy" rating and set a $60.00 price objective (up from $50.00) on shares of Papa John's International in a research note on Monday, August 11th. Finally, 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. Four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $49.78.

Papa John's International Stock Up 9.3%

The company has a market capitalization of $1.49 billion, a price-to-earnings ratio of 20.29, a P/E/G ratio of 3.53 and a beta of 1.10. The company's 50 day simple moving average is $46.53 and its two-hundred day simple moving average is $43.50.

Papa John's International (NASDAQ:PZZA - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.41 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $529.17 million during the quarter, compared to the consensus estimate of $515.48 million. During the same period last year, the firm earned $0.61 earnings per share. Papa John's International's revenue was up 4.2% compared to the same quarter last year. Analysts anticipate that Papa John's International, Inc. will post 2.19 EPS for the current year.

Papa John's International Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, August 18th were paid a dividend of $0.46 per share. 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 payout ratio is presently 81.42%.

Institutional Investors Weigh In On Papa John's International

Several institutional investors and hedge funds have recently made changes to their positions in PZZA. Caitong International Asset Management Co. Ltd lifted its stake in shares of Papa John's International by 4,646.7% during the first quarter. Caitong International Asset Management Co. Ltd now owns 712 shares of the company's stock worth $29,000 after buying an additional 697 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of Papa John's International by 937.8% during the first quarter. Smartleaf Asset Management LLC now owns 851 shares of the company's stock worth $34,000 after purchasing an additional 769 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in shares of Papa John's International by 181.8% during the second quarter. Farther Finance Advisors LLC now owns 947 shares of the company's stock worth $46,000 after purchasing an additional 611 shares during the last quarter. Investors Research Corp purchased a new position in shares of Papa John's International during the second quarter worth $49,000. Finally, Huntington National Bank raised its holdings in shares of Papa John's International by 7,600.0% during the second quarter. Huntington National Bank now owns 1,001 shares of the company's stock worth $49,000 after purchasing an additional 988 shares during the last quarter.

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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