Domino's Pizza (NASDAQ:DPZ) Rating Lowered to "Sector Perform" at Royal Bank Of Canada

Key Points

• Royal Bank of Canada has downgraded Domino's Pizza from an "outperform" to a "sector perform" rating, with a price target of $500.00, reflecting a potential upside of 5.41% from its previous close.
• Domino's Pizza reported $3.81 earnings per share in its latest quarterly earnings, missing the consensus estimate of $3.93, with revenue increasing 4.3% year-over-year.
• Institutional investors now hold 94.63% of Domino's Pizza stock, with notable increases in holdings from firms such as Berkshire Hathaway and GAMMA Investing.

Royal Bank Of Canada lowered shares of Domino's Pizza (NASDAQ:DPZ - Free Report) from an outperform rating to a sector perform rating in a research note issued to investors on Tuesday, MarketBeat Ratings reports. They currently have $500.00 price objective on the restaurant operator's stock, down from their prior price objective of $550.00.

A number of other brokerages have also weighed in on DPZ. Robert W. Baird boosted their price objective on shares of Domino's Pizza from $500.00 to $535.00 and gave the stock an "outperform" rating in a report on Wednesday, April 23rd. Redburn Atlantic began coverage on Domino's Pizza in a report on Tuesday, June 10th. They issued a "sell" rating and a $340.00 target price on the stock. BTIG Research set a $530.00 target price on shares of Domino's Pizza and gave the stock a "buy" rating in a report on Monday, April 28th. TD Securities reiterated a "buy" rating and set a $490.00 price target on shares of Domino's Pizza in a report on Monday, April 28th. Finally, Stephens restated an "equal weight" rating and issued a $440.00 price target on shares of Domino's Pizza in a report on Wednesday, April 2nd. Two investment analysts have rated the stock with a sell rating, eleven have given a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $489.67.

Domino's Pizza Price Performance

DPZ traded up $5.33 during trading on Tuesday, hitting $475.38. 515,870 shares of the stock traded hands, compared to its average volume of 714,755. The firm has a market capitalization of $16.14 billion, a P/E ratio of 27.61, a price-to-earnings-growth ratio of 2.58 and a beta of 1.09. The firm has a 50-day moving average of $464.15 and a 200 day moving average of $463.33. Domino's Pizza has a 12-month low of $396.06 and a 12-month high of $500.55.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last posted its earnings results on Monday, July 21st. The restaurant operator reported $3.81 EPS for the quarter, missing the consensus estimate of $3.93 by ($0.12). Domino's Pizza had a negative return on equity of 15.09% and a net margin of 12.49%. The company had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.14 billion. During the same period in the prior year, the business posted $4.03 earnings per share. The company's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, equities analysts predict that Domino's Pizza will post 16.74 EPS for the current fiscal year.

Domino's Pizza Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be given a dividend of $1.74 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $6.96 dividend on an annualized basis and a yield of 1.46%. Domino's Pizza's dividend payout ratio is currently 40.42%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DPZ. Nomura Asset Management Co. Ltd. increased its holdings in Domino's Pizza by 0.5% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 16,172 shares of the restaurant operator's stock valued at $6,788,000 after buying an additional 83 shares in the last quarter. Orion Portfolio Solutions LLC boosted its position in Domino's Pizza by 20.9% during the fourth quarter. Orion Portfolio Solutions LLC now owns 3,166 shares of the restaurant operator's stock worth $1,329,000 after acquiring an additional 547 shares during the last quarter. Level Four Advisory Services LLC grew its stake in Domino's Pizza by 3.3% during the 4th quarter. Level Four Advisory Services LLC now owns 979 shares of the restaurant operator's stock valued at $411,000 after acquiring an additional 31 shares in the last quarter. DnB Asset Management AS lifted its position in Domino's Pizza by 11.7% during the fourth quarter. DnB Asset Management AS now owns 6,321 shares of the restaurant operator's stock worth $2,653,000 after buying an additional 663 shares in the last quarter. Finally, Brown Brothers Harriman & Co. boosted its position in shares of Domino's Pizza by 1,016.7% during the 4th quarter. Brown Brothers Harriman & Co. now owns 67 shares of the restaurant operator's stock valued at $28,000 after acquiring an additional 61 shares during the last quarter. 94.63% of the stock is owned by institutional investors and hedge funds.

About Domino's Pizza

Domino's Pizza, Inc, through its subsidiaries, operates as a pizza company in the United States and internationally. The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. It offers pizzas under the Domino's brand name through company-owned and franchised stores.