Petco Health and Wellness (NASDAQ:WOOF) Given New $3.50 Price Target at UBS Group

Key Points

• UBS Group lowered Petco’s price target from $4.00 to $3.50 while maintaining a “neutral” rating, implying about 32% upside from the $2.65 share price.
• Analyst sentiment remains cautious: Petco has an average “Hold” rating and a consensus target of $3.64, with six Holds, one Buy and one Sell among tracked analysts.
• Petco beat quarterly earnings expectations with $0.13 in EPS versus $0.07 forecast, while revenue matched estimates at $1.49 billion; however, flat sales, low margins and ongoing leverage remain key risks.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) had its target price decreased by research analysts at UBS Group from $4.00 to $3.50 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's price target indicates a potential upside of 32.33% from the stock's current price.

WOOF has been the topic of a number of other research reports. Citigroup dropped their price target on shares of Petco Health and Wellness from $4.00 to $3.25 and set a "neutral" rating on the stock in a research report on Thursday, June 4th. Weiss Ratings reiterated a "sell (d)" rating on shares of Petco Health and Wellness in a research report on Thursday, June 11th. Zacks Research downgraded shares of Petco Health and Wellness from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. Wall Street Zen raised shares of Petco Health and Wellness from a "hold" rating to a "buy" rating in a research note on Saturday, July 4th. Finally, Robert W. Baird boosted their target price on shares of Petco Health and Wellness from $3.00 to $3.25 and gave the company a "neutral" rating in a report on Thursday. One analyst has rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $3.64.

Petco Health and Wellness Trading Up 0.6%

Shares of WOOF traded up $0.01 during mid-day trading on Thursday, reaching $2.65. 4,672,005 shares of the company were exchanged, compared to its average volume of 2,131,003. Petco Health and Wellness has a 52 week low of $2.24 and a 52 week high of $3.96. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.29 and a current ratio of 0.85. The stock has a market capitalization of $855.28 million, a PE ratio of 132.32, a PEG ratio of 2.99 and a beta of 1.53. The business has a 50 day simple moving average of $2.71 and a two-hundred day simple moving average of $2.74.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.07 by $0.06. Petco Health and Wellness had a return on equity of 1.36% and a net margin of 0.09%.The business had revenue of $1.49 billion for the quarter, compared to analysts' expectations of $1.49 billion. During the same period in the prior year, the business posted $0.05 earnings per share. On average, analysts predict that Petco Health and Wellness will post 0.09 earnings per share for the current fiscal year.

Insider Activity at Petco Health and Wellness

In related news, insider Holly May sold 200,000 shares of the stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $2.54, for a total transaction of $508,000.00. Following the transaction, the insider directly owned 1,327,867 shares of the company's stock, valued at $3,372,782.18. This represents a 13.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders have sold 450,000 shares of company stock worth $1,145,500. Company insiders own 6.50% of the company's stock.

Hedge Funds Weigh In On Petco Health and Wellness

A number of institutional investors and hedge funds have recently made changes to their positions in WOOF. Nuveen LLC grew its stake in Petco Health and Wellness by 81.9% in the fourth quarter. Nuveen LLC now owns 3,998,724 shares of the company's stock valued at $11,236,000 after acquiring an additional 1,800,860 shares during the period. Holocene Advisors LP raised its position in shares of Petco Health and Wellness by 42.0% during the third quarter. Holocene Advisors LP now owns 6,091,656 shares of the company's stock worth $23,575,000 after purchasing an additional 1,800,583 shares during the period. Hillsdale Investment Management Inc. bought a new position in shares of Petco Health and Wellness in the 1st quarter worth $3,883,000. Goldman Sachs Group Inc. lifted its holdings in shares of Petco Health and Wellness by 60.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,637,695 shares of the company's stock worth $11,095,000 after purchasing an additional 1,367,299 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in Petco Health and Wellness in the 4th quarter valued at $2,692,000.

Key Petco Health and Wellness News

Here are the key news stories impacting Petco Health and Wellness this week:

• Positive Sentiment: Petco reported Q2 adjusted earnings of approximately $0.13 per share, ahead of the roughly $0.07 consensus estimate and up from $0.05 a year earlier. Revenue was $1.49 billion, essentially matching expectations. Petco Reports Second Quarter 2026 Results
• Positive Sentiment: Net income increased to $38.7 million, while operating cash flow nearly doubled. Petco also announced a $75 million debt prepayment, supporting progress toward its target of reducing leverage to twice adjusted EBITDA. The Market Is Finally Starting To Come Around To Petco Health and Wellness Company
• Positive Sentiment: The “Reach for the Sky” strategy is showing early traction in consumables, services and omnichannel sales. Management forecast fiscal 2026 adjusted EBITDA of $415 million to $430 million and reaffirmed its sales outlook for flat to 1.5% growth. Petco Fiscal 2026 Outlook
• Neutral Sentiment: Robert W. Baird raised its price target from $3.00 to $3.25 but maintained a “neutral” rating, indicating analysts see upside while remaining cautious about the turnaround.
• Negative Sentiment: Revenue was flat year over year, and part of the cash-flow improvement benefited from a one-time tariff refund. Petco’s very low net margin and continued leverage mean sustained operational gains are needed to support the stock’s advance.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc NASDAQ: WOOF is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets.

In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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