Domino's Pizza Gains Institutional Confidence as Trading Volume Ranks 410th in Top 500 and Analysts Lift Price Targets to 509.07

On August 15, 2025, Domino’s Pizza (DPZ) closed at $451.60, up 0.08% for the day, with a trading volume ranking of 410th out of the market’s top 500 stocks. Analysts have recently raised price targets for DPZ, with an average estimate of $509.07, reflecting confidence in the company’s undervaluation despite mixed quarterly earnings results. Institutional investors, including Independent Advisor Alliance, increased holdings by 109.2% in the first quarter, while other firms added new positions, signaling growing institutional interest.

Recent operational developments highlight Domino’s strategic focus on menu innovation. The launch of the Parmesan Stuffed Crust pizza, introduced in Q1 2025, has driven U.S. same-store sales growth of 3.4% in Q2 2025. The premium product, priced to boost average ticket sizes, has been well-received, with management positioning it as a long-term menu staple. Operational investments in training have supported consistent execution, reinforcing consumer satisfaction and repeat orders.

Analysts have emphasized the stock’s potential for downside protection through shorting out-of-the-money (OTM) put options. A recent strategy involved shorting the $430 strike price put option, yielding a 1.28% return over one month. This approach aligns with DPZ’s elevated price targets and stable dividend yield of 1.5%, offering investors a balance of income and capital appreciation potential.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 generated a total profit of $10,720, with a cumulative return of 1.08 times the initial investment. This underscores the role of trading volume in identifying short-term opportunities in active stocks like DPZ.