Papa John's International (NASDAQ:PZZA) Sets New 12-Month Low - Here's Why

Key Points

• Papa John’s shares hit a new 52-week low, trading as low as $19.27, with the stock significantly below its 50-day and 200-day moving averages.
• Analysts have grown more cautious, with several firms cutting price targets; the consensus rating is “Reduce” with a $32 target, while six analysts rate the stock Hold and three rate it Sell.
• The company narrowly beat quarterly earnings and revenue expectations, but revenue fell 8.8% year over year, and profitability remained weak with a 1.34% net margin and negative return on equity.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday. The company traded as low as $19.27 and last traded at $19.2360, with a volume of 70061 shares traded. The stock had previously closed at $19.43.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. UBS Group lowered their target price on Papa John's International from $33.00 to $28.00 and set a "neutral" rating on the stock in a research note on Friday, August 7th. Stephens restated an "equal weight" rating and issued a $24.00 price target (down from $38.00) on shares of Papa John's International in a research note on Friday, August 7th. Piper Sandler decreased their price objective 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. Zacks Research cut Papa John's International from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Finally, Mizuho lowered their price objective on Papa John's International from $33.00 to $32.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. Six equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $32.00.

Papa John's International Price Performance

The firm has a market cap of $626.73 million, a price-to-earnings ratio of 24.04, a P/E/G ratio of 2.13 and a beta of 1.13. The stock has a 50-day moving average of $23.50 and a 200-day moving average of $30.43.

Papa John's International (NASDAQ:PZZA - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.01. The firm 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 10.98% and a net margin of 1.34%.The company's quarterly revenue was down 8.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.41 EPS. On average, equities analysts expect that Papa John's International, Inc. will post 1.16 EPS for the current fiscal year.

Institutional Investors Weigh In On Papa John's International

Several institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Papa John's International during the 2nd quarter worth approximately $182,315,000. Bank of America Corp DE bought a new position in Papa John's International in the second quarter valued at approximately $83,186,000. Bank of New York Mellon Corp bought a new position in Papa John's International in the second quarter valued at approximately $13,942,000. Alberta Investment Management Corp acquired a new position in Papa John's International during the second quarter valued at approximately $10,138,000. Finally, Heartland Advisors Inc. acquired a new position in Papa John's International during the second quarter valued at approximately $8,393,000.

About Papa John's International

Papa John's International, Inc is a restaurant company that operates and franchises Papa Johns pizza restaurants. Its menu includes pizzas made with various crusts, toppings and specialty recipes, along with sides, desserts and beverages. Customers can order through delivery, carryout and digital ordering channels.

Founded in 1984 by John Schnatter in Jeffersonville, Indiana, the company has grown into an international quick-service restaurant brand. Papa Johns serves customers across the United States and in international markets through a combination of company-operated restaurants and franchised locations.

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