Domino’s Pizza Receives Mixed Analyst Ratings and Insider Selling
In recent news, several equities analysts have weighed in on the stock of Domino’s Pizza, providing divergent ratings and price targets. Wedbush analysts raised their price target from $430.00 to $445.00 and gave the pizza chain an “outperform” rating on July 24th. Similarly, Piper Sandler increased their price target from $349.00 to $409.00 and rated the company as “overweight” on July 25th. On the other hand, Bank of America raised its target price from $465.00 to $483.00 and assigned a “buy” rating, while BMO Capital Markets increased its target price from $450.00 to $455.00 with an “outperform” rating – both reports were released on July 25th as well.
Contrarily, Stephens maintained an “equal weight” rating with a target price at $365.00 in their report on August 31st; indicating a more subdued outlook compared to the bullish sentiment expressed by other firms.
According to Bloomberg.com, Domino’s Pizza presently holds an average rating of “Hold” with an average price target of $396.96 based on various analyst reports.
A noteworthy development involves executive vice president Cynthia A. Headen who recently sold 382 shares of Domino’s Pizza stock in a transaction completed on July 12th at an average price of $400 per share, resulting in a total transaction value of $152,800. Following this sale, Headen now owns 4,333 shares valued at approximately $1,733,200 according to a disclosure filed with the SEC.
Over the past ninety days before the aforementioned transaction, insiders collectively divested 427 shares valued at $170,095; representing approximately 0.76% ownership by company insiders.
On September 27th, the shares of Domino’s Pizza under the NYSE:DPZ symbol opened at $379.22. The company’s stock has experienced a 52-week trading range between $285.84 and $409.95, with its current closing price reflecting a 1-year high.
Domino’s Pizza currently boasts a market capitalization of $13.31 billion with a price-to-earnings (P/E) ratio of 28.66 and a P/E-to-growth (P/E/G) ratio of 2.14, indicating a premium valuation compared to its earnings growth potential. The stock also has a beta of 0.85, suggesting that it is less volatile than the overall market.
Lastly, the firm’s 50-day simple moving average stands at $390.18, while its two-hundred-day simple moving average sits at $345.86.
In conclusion, Domino’s Pizza has received mixed ratings from various equities analysts, highlighting differing perspectives on the company’s future performance and prospects in the market. Additionally, insider selling activity has been observed recently, which may influence investor sentiment towards the stock.
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Positive Outlook and Dividend Opportunities for Domino’s Pizza, Inc. (NYSE:DPZ)
In a recent research note, analysts at Zacks Research have revised their estimates for Domino’s Pizza, Inc. (NYSE:DPZ) for the fourth quarter of 2023. The analysts now predict that the restaurant operator will post earnings of $4.26 per share for the quarter, slightly higher than their previous estimate of $4.25. This adjustment reflects a cautious optimism in the company’s future performance.
Looking at the full-year earnings estimate, Zacks Research expects Domino’s Pizza to report earnings of $13.73 per share. This figure indicates a certain degree of stability and consistency in the company’s financial results.
In related news, it has been revealed that Executive Vice President Cynthia A. Headen recently sold 382 shares of Domino’s Pizza stock on July 12th, with an average price per share of $400.00, resulting in a total transaction value of $152,800.00. Following this sale, Headen now owns 4,333 shares valued at $1,733,200.
It is important to note that over the past three months, insiders have sold a total of 427 shares worth $170,095. This represents approximately 0.76% ownership of the company’s stock by insiders.
Domino’s Pizza released its quarterly earnings results on July 24th this year. The restaurant operator reported earnings per share of $3.08 for the quarter, surpassing market expectations by $0.02 per share ($3.06 estimated). With a net margin of 10.49% and negative return on equity (-11.24%), it showcased mixed financial performance during this period.
However, it is worth mentioning that Domino’s Pizza recorded revenue amounting to $1.02 billion during the second quarter—an impressive feat considering that it was slightly below market consensus estimates ($1.07 billion). Notably, there was also a decline in year-over-year revenue, with a decrease of 3.8%.
In terms of dividends, Domino’s Pizza recently declared a quarterly dividend to be paid on September 29th. Shareholders of record on September 15th will receive a dividend of $1.21 per share. This amounts to an annualized dividend of $4.84 and represents a dividend yield of 1.28%. It is important for shareholders to keep in mind that the ex-dividend date for this particular payment is September 14th.
As it stands, Domino’s Pizza has a payout ratio of 36.58%, indicating that it currently allocates a significant portion of its earnings towards dividends.
In summary, the revised earnings estimates from Zacks Research highlight the positive sentiment surrounding Domino’s Pizza’s financial performance in the coming quarter. The recent insider selling activities should be taken into consideration as part of investors’ due diligence process. While the company’s quarterly results were mixed, its ability to generate impressive revenue despite tough market conditions is commendable. Moreover, shareholders can look forward to receiving dividends in the near future, adding another layer of attractiveness to their investment decision-making process.
It is essential to stay updated with the latest news and announcements from Domino’s Pizza to ensure that one can make informed decisions based on accurate information and market trends.Keeping up with financial news outlets and expert analysis is pivotal in maintaining an informed approach when considering investment opportunities like Domino’s Pizza Inc.(NYSE:DPZ).
