Shares of Papa John’s International, Inc. (NASDAQ: PZZA) have garnered an average rating of “Hold” from twelve brokerages currently analyzing the company, as reported by MarketBeat.com. The consensus reflects a mixed sentiment, with one analyst issuing a sell rating, seven maintaining a hold rating, and four recommending a buy.
The average one-year target price set by these brokerages stands at approximately $49.44. Recent evaluations by various financial institutions have contributed to this outlook. For instance, UBS Group reaffirmed a “neutral” rating, setting a price target of $42.00 on November 10, 2023. In contrast, Zacks Research lowered its rating from hold to a “strong sell” on October 20, 2023. Furthermore, Stephens adjusted their target price from $50.00 to $49.00, assigning an “overweight” rating on November 7, 2023.
On another note, Weiss Ratings maintained a “hold (c-)” rating in their assessment on December 29, 2023, and Mizuho revised their price objective down from $44.00 to $40.00, also granting a “neutral” rating on January 9, 2024.
Recent Earnings and Financial Performance
The company experienced a negative return on equity of 13.54% with a net margin of 1.79%. Although revenue showed a modest year-over-year increase of 0.3%, it marked a decline from the $0.43 EPS posted in the same quarter the previous year. Analysts project that Papa John’s International will achieve an EPS of $2.19 for the current fiscal year.
Dividend Announcement and Institutional Trading Activity
In a recent update, Papa John’s announced a quarterly dividend scheduled for payment on February 20, 2024. Investors on record as of February 9, 2024, will receive a dividend of $0.46, which translates to an annualized dividend of $1.84 and a yield of 5.1%. The ex-dividend date is also set for February 9, 2024. Notably, the company’s dividend payout ratio currently stands at 164.29%.
Institutional investors have shown varied trading activity concerning Papa John’s shares. Wealth Enhancement Advisory Services LLC increased its stake by 3.3% in the third quarter, holding 6,507 shares valued at $290,000 after acquiring an additional 206 shares. Meanwhile, Farther Finance Advisors LLC expanded its holdings by 22.2%, now owning 1,157 shares worth $56,000 following a purchase of 210 shares.
Additionally, Financial Advocates Investment Management raised its position by 3.1%, now possessing 7,623 shares valued at $373,000, while Isthmus Partners LLC increased their stake by 0.4%, holding 74,589 shares worth $3.65 million.
Founded in 1984 by John Schnatter in Jeffersonville, Indiana, Papa John’s International is a prominent pizza restaurant chain renowned for its commitment to quality ingredients and consistent menu offerings. The company operates thousands of locations domestically and in over 40 international markets, primarily through franchising, supported by corporate-owned outlets that uphold brand standards and operational guidelines.
The ongoing evaluations by analysts and the company’s financial performance underscore the critical position Papa John’s occupies in the competitive pizza industry. Investors and stakeholders will be keenly observing upcoming developments as the company navigates its financial landscape.
