Domino’s Pizza (NASDAQ:DPZ) Shares Gap Up – What’s Next?

Domino’s Pizza Inc (NASDAQ:DPZ) gapped up prior to trading on Monday . The stock had previously closed at $322.18, but opened at $342.75. Domino’s Pizza shares last traded at $333.3910, with a volume of 673,447 shares changing hands.

Trending Headlines about Domino’s Pizza

Here are the key news stories impacting Domino’s Pizza this week:

• Positive Sentiment: Domino’s beat revenue estimates in Q2, with sales up 4.3% year over year, and management highlighted stronger order volume across delivery and carryout. Domino’s revenue beats estimates as supply-chain business offsets weak demand
• Positive Sentiment: Analysts responded with several price-target updates, including Wells Fargo raising its target to $350 and BTIG reaffirming a Buy rating with a $425 target, suggesting some confidence in the longer-term setup. These Analysts Revise Their Forecasts On Domino’s After Q2 Results
• Positive Sentiment: Free cash flow and cash flow margins were described as strong, which is helping the stock appeal to value-oriented investors after the post-earnings reaction. Domino’s Pizza Delivers Strong FCF and FCF Margins – Is DPZ Stock Too Cheap?

Wall Street Analyst Weigh In

Several analysts have recently issued reports on DPZ shares. Piper Sandler reduced their target price on Domino’s Pizza from $421.00 to $359.00 and set a “neutral” rating on the stock in a report on Monday, April 27th. Oppenheimer dropped their price target on Domino’s Pizza from $465.00 to $415.00 and set an “outperform” rating for the company in a research note on Tuesday. The Goldman Sachs Group cut their price objective on shares of Domino’s Pizza from $480.00 to $430.00 and set a “buy” rating for the company in a research report on Tuesday, April 28th. Northcoast Research reduced their price objective on shares of Domino’s Pizza from $525.00 to $445.00 and set a “buy” rating on the stock in a research note on Tuesday, April 28th. Finally, Deutsche Bank Aktiengesellschaft decreased their target price on shares of Domino’s Pizza from $435.00 to $385.00 and set a “buy” rating on the stock in a report on Thursday, July 9th. Eighteen investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $402.16.

Domino’s Pizza Stock Performance

The stock has a fifty day simple moving average of $309.57 and a two-hundred day simple moving average of $357.03. The stock has a market cap of $10.85 billion, a price-to-earnings ratio of 18.51, a P/E/G ratio of 1.62 and a beta of 0.97.

Domino’s Pizza (NASDAQ:DPZ) last posted its quarterly earnings results on Monday, July 20th. The restaurant operator reported $4.07 EPS for the quarter, missing analysts’ consensus estimates of $4.17 by ($0.10). Domino’s Pizza had a negative return on equity of 15.15% and a net margin of 11.86%.The business had revenue of $1.19 billion for the quarter. During the same period in the prior year, the business earned $3.81 earnings per share. The business’s quarterly revenue was up 4.3% compared to the same quarter last year. Equities analysts expect that Domino’s Pizza Inc will post 18.89 earnings per share for the current fiscal year.

Domino’s Pizza Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a $1.99 dividend. This represents a $7.96 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Tuesday, September 15th. Domino’s Pizza’s payout ratio is currently 45.15%.

Insider Buying and Selling

In other news, EVP Kelly E. Garcia sold 488 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $313.16, for a total value of $152,822.08. Following the completion of the transaction, the executive vice president owned 9,352 shares of the company’s stock, valued at approximately $2,928,672.32. This represents a 4.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 1,950 shares of company stock worth $611,451 over the last three months. 0.89% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Domino’s Pizza

Institutional investors have recently added to or reduced their stakes in the stock. Teacher Retirement System of Texas boosted its holdings in shares of Domino’s Pizza by 55.7% during the 4th quarter. Teacher Retirement System of Texas now owns 45,212 shares of the restaurant operator’s stock valued at $18,845,000 after acquiring an additional 16,179 shares in the last quarter. Amica Mutual Insurance Co. raised its position in Domino’s Pizza by 59.8% in the fourth quarter. Amica Mutual Insurance Co. now owns 16,576 shares of the restaurant operator’s stock valued at $6,909,000 after purchasing an additional 6,203 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Domino’s Pizza by 10.2% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 67,117 shares of the restaurant operator’s stock valued at $28,544,000 after purchasing an additional 6,223 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Domino’s Pizza by 21,977.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 914,672 shares of the restaurant operator’s stock valued at $381,254,000 after purchasing an additional 910,529 shares in the last quarter. Finally, Fisher Asset Management LLC grew its holdings in shares of Domino’s Pizza by 18.0% during the fourth quarter. Fisher Asset Management LLC now owns 34,632 shares of the restaurant operator’s stock worth $14,436,000 after purchasing an additional 5,282 shares during the last quarter. 94.63% of the stock is currently owned by institutional investors and hedge funds.

Domino’s Pizza Company Profile

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.