Domino's Pizza (NASDAQ:DPZ) Stock Crosses Above 50 Day Moving Average - Should You Sell?

Key Points

• Domino’s shares crossed above their 50-day moving average, trading as high as $323.50 and last changing hands at $322.35, while remaining below the 200-day average of $342.92.
• Analyst sentiment is broadly positive but mixed: the stock has a “Moderate Buy” consensus rating and an average price target of $380.87, though several firms recently cut targets and one downgraded the shares to “Hold.”
• Domino’s reported quarterly EPS of $4.60, beating estimates, with revenue up 3.4% year over year to $1.19 billion. The company also declared a $1.99 quarterly dividend, representing a 2.5% yield.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report) crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $314.00 and traded as high as $323.50. Domino's Pizza shares last traded at $322.35, with a volume of 760,650 shares.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Loop Capital downgraded shares of Domino's Pizza from a "buy" rating to a "hold" rating and set a $353.00 price objective on the stock. in a research note on Monday, August 10th. Mizuho lowered their target price on shares of Domino's Pizza from $420.00 to $380.00 and set an "outperform" rating for the company in a research note on Wednesday, October 14th. Robert W. Baird lowered their target price on shares of Domino's Pizza from $325.00 to $320.00 and set a "neutral" rating for the company in a research note on Wednesday, October 14th. Berenberg Bank upgraded Domino's Pizza to a "strong-buy" rating in a report on Monday, October 5th. Finally, Evercore reissued an "outperform" rating on shares of Domino's Pizza in a research note on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $380.87.

Domino's Pizza Stock Performance

The firm has a fifty day simple moving average of $314.00 and a 200 day simple moving average of $342.92. The company has a market cap of $10.60 billion, a PE ratio of 17.76, a PEG ratio of 1.43 and a beta of 0.94.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its quarterly earnings data on Tuesday, October 13th. The restaurant operator reported $4.60 earnings per share for the quarter, topping the consensus estimate of $4.33 by $0.27. Domino's Pizza had a net margin of 12.03% and a negative return on equity of 15.48%. The business had revenue of $1.19 billion for the quarter. During the same quarter in the previous year, the company earned $4.08 earnings per share. The company's revenue was up 3.4% on a year-over-year basis. As a group, equities analysts predict that Domino's Pizza Inc will post 19.10 EPS for the current fiscal year.

Domino's Pizza Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Investors of record on Tuesday, December 15th will be given a dividend of $1.99 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $7.96 annualized dividend and a yield of 2.5%. Domino's Pizza's dividend payout ratio is 43.86%.

Hedge Funds Weigh In On Domino's Pizza

A number of large investors have recently bought and sold shares of DPZ. Soroban Capital Partners LP bought a new stake in shares of Domino's Pizza in the first quarter worth $895,251,000. BlackRock Inc. acquired a new stake in Domino's Pizza in the second quarter valued at $715,704,000. Arrowstreet Capital Limited Partnership raised its holdings in Domino's Pizza by 247.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator's stock valued at $189,171,000 after acquiring an additional 375,709 shares in the last quarter. Van ECK Associates Corp raised its holdings in Domino's Pizza by 937,192.2% in the second quarter. Van ECK Associates Corp now owns 478,019 shares of the restaurant operator's stock valued at $141,513,000 after acquiring an additional 477,968 shares in the last quarter. Finally, Royal Bank of Canada boosted its stake in Domino's Pizza by 5.2% during the 1st quarter. Royal Bank of Canada now owns 448,221 shares of the restaurant operator's stock valued at $160,817,000 after acquiring an additional 22,320 shares during the last quarter. Hedge funds and other institutional investors own 94.63% of the company's stock.

About Domino's Pizza

Domino's Pizza, Inc is a global restaurant company that operates and franchises Domino's-branded pizza stores. Its core business focuses on pizza delivery and carryout, supported by digital ordering platforms, delivery technology and a supply chain that provides food and related products to stores.

The company's menu includes a variety of pizzas, along with items such as chicken, sandwiches, pasta, bread products, desserts and beverages. Domino's serves customers through a combination of company-owned and franchised locations, with franchisees operating the majority of its stores.

Founded in 1960 when Tom and James Monaghan acquired a small Michigan pizzeria, the business adopted the Domino's name in 1965 and expanded through franchising.

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