Domino’s Pizza (NASDAQ:DPZ) Shares Gap Down on Disappointing Earnings

Domino’s Pizza, Inc. (NASDAQ:DPZ) shares gapped down before the market opened on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $462.37, but opened at $441.00. Domino’s Pizza shares last traded at $444.45, with a volume of 554,580 shares traded.

The restaurant operator reported $4.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.93 by ($0.04). The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.47 billion. Domino’s Pizza had a negative return on equity of 14.35% and a net margin of 12.26%. The firm’s revenue was up 2.9% on a year-over-year basis. During the same period in the prior year, the company posted $4.48 earnings per share.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on DPZ shares. TD Cowen boosted their price target on Domino’s Pizza from $475.00 to $515.00 and gave the company a “buy” rating in a research note on Monday, November 25th. Barclays reduced their price objective on shares of Domino’s Pizza from $412.00 to $402.00 and set an “underweight” rating for the company in a research note on Friday, January 24th. TD Securities reissued a “buy” rating and set a $490.00 target price on shares of Domino’s Pizza in a research report on Monday. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $500.00 price target on shares of Domino’s Pizza in a research report on Thursday. Finally, Oppenheimer increased their price objective on Domino’s Pizza from $490.00 to $495.00 and gave the company an “outperform” rating in a report on Tuesday, January 7th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $502.33.

Institutional Investors Weigh In On Domino’s Pizza

Several large investors have recently made changes to their positions in the company. Berkshire Hathaway Inc bought a new stake in shares of Domino’s Pizza during the third quarter worth $549,399,000. Janney Montgomery Scott LLC lifted its position in Domino’s Pizza by 278.2% during the 4th quarter. Janney Montgomery Scott LLC now owns 11,060 shares of the restaurant operator’s stock worth $4,643,000 after buying an additional 8,136 shares in the last quarter. Empowered Funds LLC grew its holdings in Domino’s Pizza by 44.6% during the 4th quarter. Empowered Funds LLC now owns 5,713 shares of the restaurant operator’s stock worth $2,398,000 after acquiring an additional 1,762 shares during the last quarter. Charles Schwab Investment Management Inc. grew its holdings in Domino’s Pizza by 1.0% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 229,099 shares of the restaurant operator’s stock worth $98,545,000 after acquiring an additional 2,201 shares during the last quarter. Finally, Commerce Bank increased its position in Domino’s Pizza by 17.7% in the 3rd quarter. Commerce Bank now owns 9,354 shares of the restaurant operator’s stock valued at $4,024,000 after acquiring an additional 1,404 shares in the last quarter. Institutional investors own 94.63% of the company’s stock.

Domino’s Pizza Price Performance

The stock’s 50 day simple moving average is $440.97 and its two-hundred day simple moving average is $435.00. The company has a market capitalization of $15.37 billion, a P/E ratio of 27.50, a P/E/G ratio of 2.47 and a beta of 0.90.

Domino’s Pizza Company Profile

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.