Domino’s Pizza (NASDAQ:DPZ) Shares Gap Up – What’s Next?

Domino’s Pizza Inc (NASDAQ:DPZ) shares gapped up prior to trading on Monday . The stock had previously closed at $384.61, but opened at $401.90. Domino’s Pizza shares last traded at $396.2530, with a volume of 413,065 shares trading hands.

Key Domino’s Pizza News

Here are the key news stories impacting Domino’s Pizza this week:

• Positive Sentiment: Domino’s announced a meaningful quarterly dividend increase (about +14–15% to $1.99), boosting yield and signaling strong cash flow and shareholder return priorities. Read More.
• Positive Sentiment: Large, growing stake from Berkshire Hathaway (now ~10% owner) provides a vote of confidence and buying support that can stabilize the stock and attract long-term investors. Read More.
• Positive Sentiment: Q4 showed solid top-line results (revenue beat consensus) and management reiterated growth targets (U.S. same-store sales guidance and mid-single-digit revenue growth), supporting the case for continued market-share gains. Read More.
• Positive Sentiment: JPMorgan upgraded DPZ to “overweight” with a ~$450 target, providing an optimistic institutional view that helped support the rally earlier in the session. Read More.
• Neutral Sentiment: Several firms (TD Cowen, RBC) reaffirmed hold/sector-perform ratings with moderate targets (~$425), reflecting cautious but not negative views — reinforces mixed analyst positioning. Read More.
• Negative Sentiment: Guggenheim lowered its price target to $440 and kept a neutral rating, trimming upside and adding near-term selling pressure from model-driven investors. Read More.
• Negative Sentiment: Domino’s EPS missed estimates by a small margin (reported $5.35 vs. $5.38 consensus). While not large, the miss combined with commentary that future growth depends on sustaining low-price promotions introduces execution risk. Read More.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on DPZ shares. Benchmark reaffirmed a “buy” rating on shares of Domino’s Pizza in a research note on Monday. Guggenheim cut their target price on shares of Domino’s Pizza from $450.00 to $440.00 and set a “neutral” rating on the stock in a research report on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of Domino’s Pizza in a research report on Monday, December 29th. Piper Sandler reissued a “neutral” rating and set a $445.00 price target on shares of Domino’s Pizza in a research note on Monday, November 24th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $470.00 price objective on shares of Domino’s Pizza in a research note on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $475.71.

Domino’s Pizza Trading Down 2.5%

The firm has a market cap of $13.65 billion, a P/E ratio of 22.99, a price-to-earnings-growth ratio of 1.89 and a beta of 1.15. The firm’s 50 day moving average is $406.28 and its two-hundred day moving average is $420.23.

Domino’s Pizza (NASDAQ:DPZ) last posted its earnings results on Monday, February 23rd. The restaurant operator reported $5.35 earnings per share for the quarter, missing the consensus estimate of $5.38 by ($0.03). Domino’s Pizza had a negative return on equity of 15.28% and a net margin of 12.18%.The firm had revenue of $1.54 billion during the quarter. During the same quarter in the previous year, the business posted $4.89 EPS. The business’s revenue for the quarter was up 6.4% on a year-over-year basis. Analysts predict that Domino’s Pizza Inc will post 16.74 EPS for the current fiscal year.

Domino’s Pizza Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 30th. Shareholders of record on Friday, March 13th will be paid a $1.99 dividend. The ex-dividend date of this dividend is Friday, March 13th. This is a positive change from Domino’s Pizza’s previous quarterly dividend of $1.74. This represents a $7.96 dividend on an annualized basis and a yield of 2.0%. Domino’s Pizza’s payout ratio is presently 39.61%.

Insider Activity

In other news, EVP Kelly E. Garcia sold 4,870 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $434.06, for a total transaction of $2,113,872.20. Following the sale, the executive vice president owned 6,744 shares of the company’s stock, valued at $2,927,300.64. This trade represents a 41.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.83% of the stock is owned by company insiders.

Institutional Trading of Domino’s Pizza

A number of institutional investors have recently modified their holdings of DPZ. Wealthfront Advisers LLC grew its holdings in shares of Domino’s Pizza by 0.6% during the second quarter. Wealthfront Advisers LLC now owns 5,418 shares of the restaurant operator’s stock worth $2,441,000 after buying an additional 34 shares in the last quarter. Nisa Investment Advisors LLC boosted its position in Domino’s Pizza by 56.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 1,100 shares of the restaurant operator’s stock worth $496,000 after acquiring an additional 397 shares during the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Domino’s Pizza by 27.0% during the 2nd quarter. Envestnet Asset Management Inc. now owns 511,206 shares of the restaurant operator’s stock worth $230,349,000 after acquiring an additional 108,794 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of Domino’s Pizza during the 2nd quarter worth approximately $7,083,000. Finally, William Allan Corp raised its holdings in shares of Domino’s Pizza by 33.7% in the second quarter. William Allan Corp now owns 7,176 shares of the restaurant operator’s stock valued at $3,234,000 after purchasing an additional 1,810 shares during the last quarter. 94.63% of the stock is currently owned by institutional investors.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc (NASDAQ: DPZ) is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand?crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino’s has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino’s Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino’s has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.