Analysts at the Royal Bank of Canada have reaffirmed their “sector perform” rating for Domino’s Pizza, as reported in a research note on February 23, 2024. The analysts set a target price of $425.00 for the stock, indicating a potential upside of 5.21% based on its previous market close.
This rating comes amid a flurry of recent evaluations for Domino’s Pizza. Other analysts have also weighed in on the stock, with BTIG Research reiterating a “buy” rating, while Piper Sandler maintained a “neutral” stance, establishing a price target of $445.00. Similarly, BMO Capital Markets has assigned an “outperform” rating, and Sanford C. Bernstein restated a “market perform” rating with a target price of $470.00. Hovde Group also set a price objective of $460.00.
Currently, the consensus among analysts shows that two have rated the stock as a strong buy, eleven as a buy, thirteen as hold, and two as sell. According to MarketBeat, Domino’s Pizza has an average price target of $475.71.
Financial Performance and Insider Transactions
In its latest quarterly earnings report released on February 23, Domino’s Pizza revealed earnings of $5.35 per share, slightly missing the consensus estimate of $5.38 by $0.03. The company reported revenues of $1.54 billion, reflecting a year-over-year increase of 6.4%. Despite the revenue growth, Domino’s faced challenges with a negative return on equity of 15.28% and a net margin of 12.18%. The previous year’s earnings per share stood at $4.89.
In related news, Kelly E. Garcia, the executive vice president of Domino’s, sold 4,870 shares of the company on December 16, 2023, at an average price of $434.06, amounting to a total transaction value of $2,113,872.20. Following this sale, her remaining stake is valued at approximately $2,927,300.64, signifying a significant decrease in her ownership by 41.93%. Details of this transaction were disclosed in a filing with the Securities and Exchange Commission (SEC).
Institutional Investor Activity
Recent activity among institutional investors has also impacted Domino’s stock. Annis Gardner Whiting Capital Advisors LLC increased its holdings by 97.1% in the fourth quarter, now owning 69 shares valued at $29,000. Atlantic Union Bankshares Corp acquired a new position valued at $34,000 during the second quarter. Furthermore, Johnson Financial Group Inc. boosted its holdings by 200.0% in the third quarter, now owning 84 shares valued at $36,000.
Other notable transactions include CYBER HORNET ETFs LLC, which bought a new stake worth $42,000, and Westpac Banking Corp, which increased its stake by 31.2% during the same period. Collectively, hedge funds and institutional investors own approximately 94.63% of Domino’s Pizza stock.
As the company continues to navigate the competitive landscape of the pizza delivery market, analysts and investors alike will be closely monitoring its performance and strategic decisions moving forward.
