Analysts Set Price Target of $49.78 for Papa John’s Stock

Papa John’s International, Inc. (NASDAQ: PZZA) has received a consensus rating of “Hold” from twelve analysts currently monitoring the company, according to data compiled by MarketBeat Ratings. Of these analysts, eight have assigned a hold rating while four have issued buy recommendations. The average target price for the stock over the next twelve months is set at approximately $49.78.

Recent analyst reports have provided varied insights into the stock’s performance. On October 8, 2023, Weiss Ratings reaffirmed its “hold (c)” rating for Papa John’s shares. Just a few weeks earlier, on August 11, 2023, Deutsche Bank Aktiengesellschaft increased its price target from $40.00 to $46.00, maintaining a hold rating. Similarly, Bank of America issued a neutral rating with a revised price target of $50.00, down from $62.00, on October 6, 2023. Stifel Nicolaus raised their target to $42.00 from $38.00, also opting for a hold rating on August 15, 2023. Additionally, UBS Group restated a neutral rating and set a target price of $42.00, up from $38.00, on August 4, 2023.

Recent Earnings and Dividend Announcement

Papa John’s last reported quarterly earnings on August 7, 2023. The company posted earnings per share (EPS) of $0.41, surpassing analysts’ expectations of $0.34 by $0.07. Revenue for the quarter reached $529.17 million, exceeding predictions of $515.48 million. Despite a year-over-year revenue increase of 4.2%, the firm experienced a negative return on equity of 14.42% and a net margin of 3.58%. This performance represents a decline from the previous year’s EPS of $0.61.

In addition to earnings, the company announced a quarterly dividend of $0.46 per share, paid on August 29, 2023. This dividend corresponds to an annualized rate of $1.84, yielding approximately 3.5%. The dividend payout ratio stands at 81.42%.

Institutional Investor Activity

Institutional investors have shown varying levels of interest in Papa John’s. For instance, Charles Schwab Investment Management Inc. increased its stake by 4.1%, now holding 399,784 shares valued at about $16.4 million after acquiring an additional 15,892 shares in the last quarter. Allspring Global Investments Holdings LLC raised its stake by an impressive 117.4% during the first quarter, bringing its total to 49,084 shares valued at $2.04 million.

Other notable transactions include Templeton & Phillips Capital Management LLC, which increased its holdings by 119.6%, now owning 92,276 shares worth $3.79 million following the purchase of 50,260 shares. Additionally, Wealth Enhancement Advisory Services LLC made a new investment in the company during the second quarter, valued at approximately $309,000.

Papa John’s International operates and franchises pizza delivery and carryout restaurants, divided into several segments, including Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, and International Operations, among others. The company continues to be a significant player in the food service industry, with its financial performance closely monitored by analysts and investors alike.