Domino’s Pizza (NASDAQ:DPZ) Shares Gap Down – Time to Sell?

Shares of Domino’s Pizza Inc (NASDAQ:DPZ) gapped down before the market opened on Tuesday. The stock had previously closed at $310.90, but opened at $287.01. Domino’s Pizza shares last traded at $300.14, with a volume of 609,009 shares traded.

Key Domino’s Pizza News

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

• Positive Sentiment: Domino’s reported third-quarter earnings of $4.60 per share, above the $4.33 analyst consensus and up from $4.08 a year earlier. Revenue reached approximately $1.19 billion, also exceeding expectations. Domino’s Pizza Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Operating income increased 8.3%, while the company added 175 net stores globally—26 in the U.S. and 149 internationally. Ongoing share repurchases may also support per-share earnings. Domino’s Pizza Announces Third Quarter 2026 Financial Results
• Neutral Sentiment: TD Cowen reaffirmed its Hold rating and set a $320 price target, implying moderate upside from recent trading levels but signaling limited conviction in near-term outperformance.
• Negative Sentiment: U.S. same-store sales grew only 0.3%, while international same-store sales increased 0.2% excluding currency effects. The subdued customer demand led investors to view the quarter’s growth as underwhelming. Domino’s Pizza Falls After U.S. Same-Store Sales Disappoint
• Negative Sentiment: Revenue increased just 3.4% year over year, reinforcing concerns that sales growth is continuing to slow. The earnings beat appears to have been outweighed by cautious expectations for same-store sales and future momentum. Domino’s Pizza Sales Growth Continued Slowing

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Citigroup decreased their target price on Domino’s Pizza from $365.00 to $335.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 7th. Wells Fargo & Company boosted their price target on Domino’s Pizza from $325.00 to $350.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Sanford C. Bernstein reissued a “market perform” rating on shares of Domino’s Pizza in a research note on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft reduced their price objective on Domino’s Pizza from $435.00 to $385.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Finally, JPMorgan Chase & Co. decreased their price objective on Domino’s Pizza from $380.00 to $350.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $392.16.

Domino’s Pizza Trading Down 3.3%

The stock’s fifty day simple moving average is $325.49 and its 200 day simple moving average is $327.96. The company has a market cap of $9.95 billion, a price-to-earnings ratio of 17.04, a P/E/G ratio of 1.42 and a beta of 0.94.

Domino’s Pizza (NASDAQ:DPZ) last issued its earnings results on Tuesday, October 13th. The restaurant operator reported $4.60 earnings per share for the quarter, topping the consensus estimate of $4.33 by $0.27. The business had revenue of $1.19 billion for the quarter. Domino’s Pizza had a negative return on equity of 15.15% and a net margin of 11.86%. The company’s revenue for the quarter was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.08 earnings per share. On average, analysts predict that Domino’s Pizza Inc will post 18.95 EPS for the current year.

Insider Activity at Domino’s Pizza

In other Domino’s Pizza news, CEO Russell J. Weiner sold 10,850 shares of the business’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $330.83, for a total transaction of $3,589,505.50. Following the transaction, the chief executive officer owned 43,829 shares of the company’s stock, valued at approximately $14,499,948.07. The trade was a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Kelly E. Garcia sold 12,430 shares of the business’s stock in a transaction on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total value of $4,002,957.20. Following the transaction, the executive vice president directly owned 9,352 shares in the company, valued at $3,011,718.08. This trade represents a 57.07% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.89% of the stock is currently owned by company insiders.

Institutional Trading of Domino’s Pizza

A number of hedge funds and other institutional investors have recently modified their holdings of DPZ. GAMMA Investing LLC grew its holdings in shares of Domino’s Pizza by 67.6% in the third quarter. GAMMA Investing LLC now owns 1,820 shares of the restaurant operator’s stock valued at $545,000 after purchasing an additional 734 shares during the period. Invariant Investment Management increased its position in Domino’s Pizza by 15.1% during the third quarter. Invariant Investment Management now owns 3,461 shares of the restaurant operator’s stock worth $1,030,000 after purchasing an additional 453 shares during the last quarter. CoreCap Advisors LLC raised its stake in Domino’s Pizza by 17.0% during the third quarter. CoreCap Advisors LLC now owns 262 shares of the restaurant operator’s stock worth $79,000 after purchasing an additional 38 shares during the period. Kennon Green & Company LLC raised its stake in Domino’s Pizza by 118.2% during the third quarter. Kennon Green & Company LLC now owns 9,860 shares of the restaurant operator’s stock worth $2,954,000 after purchasing an additional 5,341 shares during the period. Finally, CX Institutional raised its stake in Domino’s Pizza by 15.6% during the third quarter. CX Institutional now owns 652 shares of the restaurant operator’s stock worth $195,000 after purchasing an additional 88 shares during the period. 94.63% of the stock is owned by institutional investors and hedge funds.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino’s began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino’s serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.