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Today’s Research Reports on Stocks to Watch: Papa John's International and PetMed Express

NEW YORK, NY / ACCESSWIRE / July 24, 2018 / Papa John's shares slid to a new low after traders learned the company's board will implement a "poison pill" stock dilution to prevent founder John Schnatter from gaining a bigger stake in the company. A Stifel analyst also lowered his rating on the stock. Shares of PetMed Express also saw its own shares sink after reporting a miss in its first quarter results.

RDI Initiates Coverage on:

Papa John's International, Inc.
https://rdinvesting.com/news/?ticker=PZZA

PetMed Express, Inc.
https://rdinvesting.com/news/?ticker=PETS

Papa John's International, Inc. shares closed down 9.75% on nearly 6.6 million shares traded yesterday. Shares hit a new low of $46.06 after Wall Street learned that the company's board will implement a "poison pill" stock dilution that would act against any move by founder John Schnatter to take a bigger stake. Schnatter owns a 29% stake in the pizza company. Schantter recently resigned as chairman after it was revealed that he used a racial slur on a conference call earlier this year. Stifel analyst Chris O'Cull also cut his rating on the stock to "sell", from "hold", and said the company is "needing a strategic savior but struggling to find one willing to underwrite a transaction given the brand damage." He added, "The rights plan is intended ... to protect the interests of the company and its stockholders by reducing the likelihood that any person or group gains control of Papa John's through open market accumulation or other tactics without paying an appropriate control premium." He further said, "The outlook for Papa John's is growing dimmer ... (the reports on Schnatter) reinforce consumer perception that Papa John's is not a trusted brand."

Access RDI's Papa John's International, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=PZZA

PetMed Express, Inc. shares closed down almost 12% yesterday on roughly 4.6 million shares traded. The stock saw a loss as high as 17% on Monday after reporting first quarter results. The drop was the biggest for the stock in about six years. The company reported revenue of $87.4 million, a 10% increase, and reorders of $71.5 million, an increase of 11%. Net income also increased 35.5% yoy to $12.6 million, or 62 cents a share. So what was the reason for the drop then? Analysts were expecting better. Analysts were calling for earnings of 63 cents. President and CEO Menderes Akdag stated, "In fiscal 2019, we will look to build on past successes by focusing on sales growth and further improving our customer service levels." The company also revealed that it would be raising its quarterly dividend from 25 cents to 27 cents and will be payable August 10th to shareholders of record as of August 3rd.

Access RDI's PetMed Express, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=PETS

Our Actionable Research on Papa John's International, Inc. (NASDAQ: PZZA) and PetMed Express, Inc. (NASDAQ: PETS) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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SOURCE: RDInvesting.com