Wells Fargo & Company Issues Pessimistic Forecast for Domino's Pizza (NASDAQ:DPZ) Stock Price

Key Points

• Wells Fargo cut its price target for Domino's from $430 to $400 and kept an "equal weight" rating, a target that implies roughly a 12.86% upside from the prior close.
• Analyst consensus is "Hold" with a mean price target of $474.64, while individual targets range widely (about $400 to $500) and analyst ratings are mixed (2 Strong Buy, 11 Buy, 13 Hold, 2 Sell).
• Domino's reported a slight EPS miss (Q EPS $5.35 vs. $5.38 expected) with revenue up 6.4% YoY to $1.54 billion; shares trade around $354.41 with a 1‑year range of $346.31–$499.08 and a market cap near $11.9 billion.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its price objective cut by equities research analysts at Wells Fargo & Company from $430.00 to $400.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has an "equal weight" rating on the restaurant operator's stock. Wells Fargo & Company's target price points to a potential upside of 12.86% from the stock's previous close.

A number of other research analysts also recently issued reports on DPZ. BTIG Research restated a "buy" rating on shares of Domino's Pizza in a report on Tuesday, February 24th. BMO Capital Markets reissued an "outperform" rating on shares of Domino's Pizza in a research report on Tuesday, February 24th. Hovde Group set a $460.00 price objective on shares of Domino's Pizza in a report on Monday, January 5th. JPMorgan Chase & Co. upgraded shares of Domino's Pizza from a "neutral" rating to an "overweight" rating and reduced their price target for the company from $460.00 to $450.00 in a research report on Tuesday, February 24th. Finally, UBS Group set a $500.00 price objective on shares of Domino's Pizza and gave the stock a "buy" rating in a report on Friday, February 13th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Domino's Pizza currently has a consensus rating of "Hold" and a consensus price target of $474.64.

Domino's Pizza Trading Up 0.4%

Shares of NASDAQ DPZ opened at $354.41 on Tuesday. Domino's Pizza has a 1-year low of $346.31 and a 1-year high of $499.08. The stock's 50-day moving average is $391.95 and its 200 day moving average is $409.04. The stock has a market cap of $11.92 billion, a price-to-earnings ratio of 20.09, a P/E/G ratio of 1.50 and a beta of 1.16.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its quarterly earnings results on Monday, February 23rd. The restaurant operator reported $5.35 EPS for the quarter, missing analysts' consensus estimates of $5.38 by ($0.03). Domino's Pizza had a negative return on equity of 15.28% and a net margin of 12.18%.The company had revenue of $1.54 billion during the quarter. During the same quarter in the prior year, the business earned $4.89 earnings per share. Domino's Pizza's revenue for the quarter was up 6.4% on a year-over-year basis. On average, analysts forecast that Domino's Pizza will post 16.74 EPS for the current fiscal year.

Institutional Trading of Domino's Pizza

A number of institutional investors and hedge funds have recently modified their holdings of the stock. State Board of Administration of Florida Retirement System boosted its holdings in Domino's Pizza by 0.8% in the 2nd quarter. State Board of Administration of Florida Retirement System now owns 33,337 shares of the restaurant operator's stock worth $15,022,000 after buying an additional 250 shares during the last quarter. Norges Bank purchased a new position in shares of Domino's Pizza in the second quarter valued at approximately $202,680,000. Panagora Asset Management Inc. boosted its stake in shares of Domino's Pizza by 3,515.8% in the second quarter. Panagora Asset Management Inc. now owns 51,127 shares of the restaurant operator's stock worth $23,038,000 after acquiring an additional 49,713 shares during the last quarter. Claret Asset Management Corp purchased a new stake in shares of Domino's Pizza during the second quarter worth approximately $234,000. Finally, M&T Bank Corp increased its position in shares of Domino's Pizza by 2.0% during the second quarter. M&T Bank Corp now owns 4,247 shares of the restaurant operator's stock worth $1,914,000 after purchasing an additional 85 shares in 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 NASDAQ: DPZ is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand‐crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino's has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino's Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino's has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.

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