Analysts at the Royal Bank of Canada have reaffirmed their “sector perform” rating for Domino’s Pizza (NASDAQ: DPZ), maintaining a target price of $425.00 per share. This projection suggests a potential upside of approximately 5.21% based on the stock’s previous closing price. The reaffirmation comes as part of a broader analysis of the company’s performance and market position.
This latest assessment from the Royal Bank of Canada aligns with several other recent evaluations of Domino’s stock. On the same day, BTIG Research reiterated a “buy” rating for the pizza giant. Earlier, on November 24, Piper Sandler maintained a “neutral” rating with a target price of $445.00. Additionally, BMO Capital Markets also endorsed an “outperform” rating, while Sanford C. Bernstein set a price target of $470.00.
As of now, the consensus rating for Domino’s Pizza is a “Hold,” with an average target price of $475.71. According to MarketBeat, the company has received two “Strong Buy” ratings, eleven “Buy” ratings, thirteen “Hold” ratings, and two “Sell” ratings from analysts.
Recent Financial Performance
Domino’s Pizza recently reported its quarterly earnings on February 23, 2024. For the quarter, the company posted earnings of $5.35 per share, falling short of the consensus estimate of $5.38 by $0.03. The revenue for the quarter reached $1.54 billion, reflecting a year-over-year increase of 6.4%. In comparison, during the same quarter last year, the company had earnings of $4.89 per share.
Despite the earnings miss, Domino’s has maintained a net margin of 12.18% and a negative return on equity of 15.28%. Analysts predict that the company will achieve an earnings per share of $16.74 for the current fiscal year.
Insider Trading and Institutional Interest
In other developments, Kelly E. Garcia, an Executive Vice President at Domino’s, sold 4,870 shares on December 16, 2023, at an average price of $434.06, amounting to a total transaction value of approximately $2.11 million. Following this sale, Garcia holds 6,744 shares, valued at about $2.93 million, marking a significant decrease in ownership of 41.93%.
Institutional investors have shown considerable interest in Domino’s Pizza stock. During the fourth quarter, Annis Gardner Whiting Capital Advisors LLC increased its holdings by 97.1%, now owning 69 shares valued at $29,000. Other notable transactions include Johnson Financial Group Inc., which raised its stake by 200.0% in the third quarter, now holding 84 shares valued at $36,000.
Currently, approximately 94.63% of Domino’s stock is owned by hedge funds and institutional investors, illustrating a strong confidence in the company’s future.
Domino’s Pizza, based in Ann Arbor, Michigan, is a major player in the global pizza delivery and carryout market, operating over 17,000 locations worldwide, predominantly under a franchise model. The company emphasizes convenience and speed through its proprietary ordering platforms and the innovative Domino’s Tracker system, which offers real-time order updates.
As the company navigates the current market landscape, analysts and investors alike will be closely monitoring its performance in the coming quarters.
