Domino's Pizza (ASX:DMP) shares fall 3%. What's going on?

What's going wrong with Domino's Pizza today?

The S&P/ASX 200 Index (ASX: XJO) is not having a great day on the markets today. The ASX 200 is currently down 0.49% to 7,277 points at the time of writing. However, one share that's doing far worse on the markets today is Domino's Pizza Enterprises Ltd. (ASX: DMP). Domino's shares are currently down 3.05% to $116.84 a share. The company is also down 1.6% over the past 5 trading days. But is also still up 4.2% over the past month and up a healthy 32.3% year to date.

But what's going on with Domino's today to elicit such a divergent share price movement to the broader market?

Person taking out a slice of pizza from a pizza box.

Image source: Getty Images

Domino's share price on the slide

Well, the only real news out of the company today (or since 24 June in fact) was an ASX notice released this morning. This notice informed the markets that a substantial investor in First Sentier Investors Holding Pty Ltd had sold some of its position in Domino's throughout June. This notice included both buy and sell moves. But the sales outnumbered the buys by quite a large margin. Several sell transactions were over $1 million in value. The highest being approximately $6 million worth of Domino's shares. We can't say for sure whether that is weighing on the Domino's share price's performance today, but it's certainly possible that it is affecting sentiment today.

Another recent piece of news out of Domino's was the announcement last week that the company has opened its 800th store in Japan, just 12 months after opening its 700th store. However, as my Fool colleague reported, this actually seemed to have a negative effect on the Dominos share price at the time.

Or perhaps today's move is just some good old fashioned profit-taking. As we touched on earlier, Domino's has been a great performer in 2021 so far, vastly outstripping the performance of the ASX 200. Seeing as it's now tax time, there might have been some investors keen to move some money around in their share portfolios. Whatever the reason for today's move in the Domino's share price, long-term investors certainly can't complain too much, given this company's success over the past decade or so.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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