Cabot Wealth Management Inc. has raised its investment in Domino’s Pizza Inc. (NASDAQ: DPZ) by 1.4% during the second quarter of 2023. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC), Cabot now holds 26,336 shares of the pizza giant, having acquired an additional 375 shares over the quarter. This investment constitutes approximately 1.4% of Cabot’s total portfolio, making Domino’s its 26th largest holding. The value of Cabot’s stake in Domino’s Pizza is reported at $11,867,000.
Several other institutional investors have also adjusted their positions in Domino’s recently. Impax Asset Management Group plc initiated a new investment valued at $633,000 in the first quarter. The Teacher Retirement System of Texas purchased shares worth $2,319,000, while Charles Schwab Investment Management Inc. acquired a significant stake valued at $110,348,000. Summit Trail Advisors LLC increased its holdings by 157.2%, now owning 1,597 shares valued at $734,000. Additionally, Asset Management One Co. Ltd. raised its stake by 0.9%, bringing its total to 13,883 shares worth $6,379,000. Currently, institutional investors and hedge funds collectively own 94.63% of Domino’s stock.
Wall Street Analysts Project Growth
Analysts have been closely watching Domino’s Pizza, with multiple research reports indicating potential growth. Benchmark recently raised its target price from $535.00 to $540.00 and reaffirmed a “buy” rating. Similarly, BTIG Research maintained a “buy” rating with a price target of $530.00. In contrast, Citigroup lowered its price objective from $500.00 to $480.00, assigning a “neutral” rating. Barclays also reduced its target from $425.00 to $405.00, giving it an “underweight” rating.
The consensus among analysts shows varied opinions, with one issuing a Strong Buy rating, twelve recommending Buy, eleven suggesting Hold, and two advising Sell. As per data from MarketBeat.com, the stock currently holds a “Hold” rating with an average price target of $489.92.
Recent Insider Transactions and Stock Performance
In related news, Director James A. Goldman sold 1,000 shares of Domino’s on August 18, 2023, at an average price of $451.49, totaling $451,490.00. Following this transaction, Goldman retained 3,384 shares valued at approximately $1,527,842.16, reflecting a 22.81% decrease in ownership. This transaction has been disclosed in a filing with the SEC.
As of the latest trading session, Domino’s Pizza stock opened at $414.86, marking a 1.6% decline. The company’s 50-day moving average stands at $436.64, while the 200-day average is $456.68. With a market capitalization of $14.02 billion and a P/E ratio of 24.25, Domino’s Pizza has seen a 52-week low of $397.12 and a high of $500.55.
Domino’s recently reported its earnings results on October 14, 2023, revealing earnings per share (EPS) of $4.08, which exceeded analysts’ expectations of $3.96 by $0.12. The company achieved revenues of $1.15 billion, surpassing estimates of $1.14 billion. Compared to the previous year, Domino’s revenue grew by 6.2% despite a net margin of 12.16% and a negative return on equity of 14.91%.
Additionally, Domino’s announced a quarterly dividend scheduled for payment on December 26, 2023. Shareholders of record by December 15, 2023 will receive a dividend of $1.74 per share, equating to an annualized dividend of $6.96 and a yield of 1.7%. The company’s current payout ratio is 40.68%.
Domino’s Pizza operates as a leading pizza company both in the United States and internationally, with its operations divided into three segments: U.S. Stores, International Franchise, and Supply Chain. The company continues to maintain a strong presence in the competitive food service industry.
