Israel Englander, the hedge fund kingpin who turned $35 million into a $70 billion juggernaut, just made it clear that he doesn’t have time for half-baked returns—or pizza. His fund, Millennium Management, has just slashed 64% of its stake in Domino’s Pizza during Q3. Translation: If you ever feel useless, just remember you aren’t Domino’s stock when it comes to institutional investors.

(Source: Giphy) 

Why? Well in addition to Millennium yeeting Domino shares from their portfolio, Steven Cohen’s Point72 Asset Management slashed its Domino’s position by a whopping 64.9% in Q3, dumping over 90,000 shares of the stock. By the end of the quarter, Point72 held just 49,122 shares worth $21.13 million—a meager 0.14% of the company’s stock. Hell, when Cohen, known for his aggressive and insider trading data-driven approach, starts scaling back, it’s a flashing red light.

(Source: Yahoo Finance) 

The reason, of course, is that Domino’s has been stale. The stock is up a tepid 12% this year, which sounds good, but still a bit embarrassing when the S&P 500 is flexing a 27% gain. Even Warren Buffett’s Berkshire Hathaway picking up shares didn’t light the fire investors were hoping for. Meaning Englander nor Cohen clearly lack the patience for a company trudging through rising costs, brutal competition, and a labor market so tight it’s practically choking.

What’s more is that Domino’s still trades at a lofty 28 times next year’s earnings, so calling it “cheap” would be a joke. Sure, it’s got a global brand and a massive footprint, but who cares when the dividend yield is a forgettable 1.31%? When it comes to money managers like Point72 and Millenium, they don’t need another stock in their portfolio that’s crawling—they are looking for something that friggin flies. And right now, Domino’s ain’t flyin’. 

(Source: Wall Street Journal) 

It’s also worth noting (adding insult to injury here), is that not only has Englander dumped over half of his shares in Domino’s, but he’s now hedged with a fat stack of puts in Millennium’s portfolio, meaning Englander’s team is straight-up betting the stock could tank further. Translation: Domino’s isn’t just out of favor—it’s officially on the chopping block.

(Source: Giphy) 

Plus, it’s not just big wigs cutting the fat here. Andrew Balson, a Domino’s director, recently sold 31% of his Domino holdings in October. The shares were sold at an average price of $428.27, netting Balson a cool $2.98 million. In addition, Kevin Scott Morris, Domino’s Executive Vice President also made a 57% reduction in his Domino shares, at $459 for a nice $1.21 million. 

So it’s clear that these insider sales come during a year when Domino’s has struggled to keep pace with the broader market. Again, with intense cost pressures, weaker-than-expected international store openings, and a stock valuation that still feels bloated at over 28 times forward earnings—it doesn’t take a rocket scientist to connect the dots on how sour Domino’s has gotten with institutions and even insiders. 

(Source: Giphy) 

Meaning, when the smartest money in the room is not just selling, but hedging against further declines, retail investors should take notice.Sure, Domino’s might rebound someday, but for now, the smart money is chasing bigger, juicier gains elsewhere. The pizza party? Well it’s officially over. For now, anyway. 

Obviously, do what you will with this information, but place your bets accordingly, friends. As always, stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.