Domino’s Pizza’s (DPZ) Hold Rating Reaffirmed at TD Cowen

Domino’s Pizza (NASDAQ:DPZ)‘s stock had its “hold” rating reiterated by equities research analysts at TD Cowen in a research report issued on Tuesday, MarketBeat Ratings reports. They presently have a $320.00 price objective on the restaurant operator’s stock. TD Cowen’s price target points to a potential upside of 5.79% from the stock’s previous close.

A number of other equities research analysts have also recently weighed in on the company. 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 report on Tuesday, July 21st. Royal Bank Of Canada dropped their price target on Domino’s Pizza from $350.00 to $325.00 and set a “sector perform” rating for the company in a report on Monday, October 5th. Guggenheim dropped their price target on Domino’s Pizza from $440.00 to $325.00 and set a “neutral” rating for the company in a report on Wednesday, September 23rd. Morgan Stanley set a $357.00 target price on Domino’s Pizza in a research note on Friday, October 9th. Finally, BMO Capital Markets lowered their target price on Domino’s Pizza from $450.00 to $420.00 and set an “outperform” rating for the company in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $380.87.

Domino’s Pizza Stock Up 2.2%

DPZ stock traded up $6.61 during midday trading on Tuesday, reaching $302.50. 645,797 shares of the company’s stock traded hands, compared to its average volume of 916,432. The company has a 50-day simple moving average of $322.65 and a two-hundred day simple moving average of $327.05. Domino’s Pizza has a 1-year low of $282.00 and a 1-year high of $442.35. The company has a market cap of $10.01 billion, a price-to-earnings ratio of 16.70, a PEG ratio of 1.35 and a beta of 0.94.

Domino’s Pizza (NASDAQ:DPZ) last released its quarterly earnings results on Tuesday, October 13th. The restaurant operator reported $4.60 earnings per share for the quarter, beating analysts’ consensus estimates of $4.33 by $0.27. Domino’s Pizza had a negative return on equity of 15.48% and a net margin of 12.03%. The firm had revenue of $1.19 billion during the quarter. During the same period in the prior year, the business earned $4.08 earnings per share. The company’s revenue for the quarter was up 3.4% on a year-over-year basis. Equities research analysts forecast that Domino’s Pizza will post 18.98 EPS for the current year.

Insider Buying and Selling at Domino’s Pizza

In other news, EVP Kelly Garcia sold 12,430 shares of the firm’s stock in a transaction on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total value of $4,002,957.20. Following the transaction, the executive vice president directly owned 9,352 shares in the company, valued at $3,011,718.08. This trade represents a 57.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Russell Weiner sold 10,850 shares of the firm’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $330.83, for a total value of $3,589,505.50. Following the completion of the transaction, the chief executive officer owned 43,829 shares in the company, valued at $14,499,948.07. This represents a 19.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.89% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Berkshire Hathaway Inc boosted its position in shares of Domino’s Pizza by 12.3% in the 4th quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator’s stock worth $1,396,347,000 after purchasing an additional 368,055 shares during the last quarter. Soroban Capital Partners LP bought a new position in Domino’s Pizza during the first quarter worth about $895,251,000. BlackRock Inc. bought a new position in Domino’s Pizza during the second quarter worth about $715,704,000. T. Rowe Price Investment Management Inc. lifted its holdings in Domino’s Pizza by 0.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,008,278 shares of the restaurant operator’s stock worth $837,091,000 after acquiring an additional 7,497 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Domino’s Pizza by 247.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator’s stock worth $189,171,000 after acquiring an additional 375,709 shares in the last quarter. 94.63% of the stock is currently owned by institutional investors.

Domino’s Pizza News Summary

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

• Positive Sentiment: Q3 results exceeded expectations. Domino’s reported earnings of $4.60 per share versus the $4.33 consensus estimate, while revenue rose 3.4% year over year to $1.19 billion, ahead of the $1.17 billion forecast. Domino’s Q3 EPS report
• Positive Sentiment: Capital returns remain supportive. The company declared a quarterly dividend of $1.99 per share, or $7.96 annualized, representing a yield of roughly 2.7%. Some analysts remain bullish, including BTIG with a $425 price target and Bank of America with a $410 target despite reducing its forecast. Domino’s valuation and capital returns
• Neutral Sentiment: Wall Street’s view has become more divided. Bernstein initiated coverage with a Hold rating, while several firms still see upside based on valuation. However, the broad direction of revisions has been lower, indicating reduced confidence in near-term growth. Bernstein Hold rating
• Negative Sentiment: Analysts cut price targets following the report. Citi, Morgan Stanley, RBC and Baird all lowered their targets, while Gordon Haskett downgraded Domino’s from Strong Buy to Hold. Analysts cited an increasingly unfavorable consumer backdrop and weak international sales. Domino’s price-target cuts
• Negative Sentiment: Core demand trends are weakening. U.S. same-store sales grew only 0.3%, and customers are spending less per order even though ordering frequency increased. Slower growth, lower guidance and potential franchisee profitability problems are weighing on the stock. Domino’s franchisee concerns

Domino’s Pizza Company Profile

Domino’s Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino’s began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino’s serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.