Papa John's International (NASDAQ:PZZA) Reaches New 12-Month Low - What's Next?

Key Points

• Papa John’s shares fell to a new 52-week low of $22.65, closing near $22.71 and trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is weak: the stock carries a consensus “Reduce” rating, with six Hold and three Sell ratings and an average price target of $32.00. Several firms recently cut their price targets, including Bank of America, Piper Sandler and Stephens.
• The company slightly exceeded quarterly earnings and revenue expectations, reporting $0.46 in EPS and $482.4 million in revenue, but revenue declined 8.8% year over year and profitability remained modest.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) reached a new 52-week low during trading on Tuesday . The stock traded as low as $22.65 and last traded at $22.71, with a volume of 1094713 shares changing hands. The stock had previously closed at $23.48.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Zacks Research cut shares of Papa John's International from a "hold" rating to a "strong sell" rating in a report on Monday, July 13th. Weiss Ratings raised Papa John's International from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, August 21st. Bank of America reiterated an "underperform" rating and set a $34.00 price target (down from $42.00) on shares of Papa John's International in a research report on Monday, July 13th. Piper Sandler cut their price target on Papa John's International from $30.00 to $26.00 and set a "neutral" rating on the stock in a report on Friday, August 7th. Finally, Stephens restated an "equal weight" rating and set a $24.00 price objective (down from $38.00) on shares of Papa John's International in a research report on Friday, August 7th. Six research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $32.00.

Papa John's International Trading Down 3.3%

The company's 50-day moving average is $29.83 and its two-hundred day moving average is $32.46. The stock has a market capitalization of $747.66 million, a P/E ratio of 28.75, a P/E/G ratio of 2.47 and a beta of 1.13.

Papa John's International (NASDAQ:PZZA - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.45 by $0.01. Papa John's International had a net margin of 1.34% and a negative return on equity of 10.98%. The firm had revenue of $482.40 million during the quarter, compared to analysts' expectations of $481.25 million. During the same quarter in the prior year, the firm earned $0.41 EPS. Papa John's International's quarterly revenue was down 8.8% on a year-over-year basis. Sell-side analysts expect that Papa John's International, Inc. will post 1.22 EPS for the current fiscal year.

Hedge Funds Weigh In On Papa John's International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PZZA. Public Employees Retirement System of Ohio bought a new stake in Papa John's International during the 2nd quarter valued at $29,000. Persistent Asset Partners Ltd acquired a new position in shares of Papa John's International during the second quarter valued at $33,000. Lazard Asset Management LLC acquired a new position in shares of Papa John's International during the second quarter valued at $59,000. Leonteq Securities AG acquired a new position in shares of Papa John's International during the fourth quarter valued at $71,000. Finally, Kestra Advisory Services LLC bought a new stake in shares of Papa John's International during the fourth quarter valued at about $73,000.

About Papa John's International

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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