Papa John's International Target of Unusually High Options Trading (NASDAQ:PZZA)

Key Points

• Put-option activity surged: Traders purchased 21,598 put options on Papa John’s, roughly 430% above the average volume, signaling unusually high bearish or hedging interest.
• The stock fell sharply: Shares dropped 14.2% to $25.51, near their 52-week low of $24.43, with trading volume well above average.
• Analyst sentiment remains cautious: The stock has a consensus “Reduce” rating and a $36.38 target price, despite quarterly earnings and revenue slightly exceeding estimates; revenue still declined 8.8% year over year.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) saw unusually large options trading activity on Thursday. Traders purchased 21,598 put options on the stock. This represents an increase of approximately 430% compared to the average volume of 4,076 put options.

Wall Street Analysts Forecast Growth

PZZA has been the topic of a number of research analyst reports. Weiss Ratings lowered Papa John's International from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 18th. Benchmark decreased their target price on shares of Papa John's International from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Wall Street Zen upgraded Papa John's International from a "sell" rating to a "hold" rating in a research note on Sunday, July 26th. Mizuho reduced their price target on Papa John's International from $33.00 to $32.00 and set a "neutral" rating for the company in a research note on Friday, July 31st. Finally, Zacks Research downgraded shares of Papa John's International from a "hold" rating to a "strong sell" rating in a research note on Monday, July 13th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $36.38.

Papa John's International Trading Down 14.2%

Papa John's International stock traded down $4.24 on Thursday, hitting $25.51. 3,254,248 shares of the stock traded hands, compared to its average volume of 1,180,167. Papa John's International has a 1 year low of $24.43 and a 1 year high of $55.74. The business's fifty day simple moving average is $33.25 and its 200 day simple moving average is $33.96. The firm has a market cap of $839.34 million, a P/E ratio of 30.80, 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 posted its quarterly earnings data on Thursday, August 6th. The company reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.01. The company had revenue of $482.40 million during the quarter, compared to analysts' expectations of $481.25 million. Papa John's International had a negative return on equity of 10.71% and a net margin of 1.37%.Papa John's International's revenue for the quarter was down 8.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.41 earnings per share. As a group, analysts predict that Papa John's International will post 1.47 earnings per share for the current year.

Institutional Trading of Papa John's International

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Great Hill Capital LLC bought a new position in Papa John's International in the 4th quarter valued at about $5,843,000. Willis Investment Counsel bought a new position in shares of Papa John's International during the 4th quarter valued at about $1,336,000. Deprince Race & Zollo Inc. lifted its stake in Papa John's International by 2.7% during the fourth quarter. Deprince Race & Zollo Inc. now owns 1,657,994 shares of the company's stock valued at $63,816,000 after purchasing an additional 42,810 shares during the last quarter. Heartland Advisors Inc. increased its holdings in shares of Papa John's International by 53.3% in the first quarter. Heartland Advisors Inc. now owns 239,850 shares of the company's stock valued at $7,774,000 after buying an additional 83,350 shares in the last quarter. Finally, Anson Funds Management LP acquired a new stake in Papa John's International during the 1st quarter worth about $2,431,000.

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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