Petco Health and Wellness (NASDAQ:WOOF) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Petco Health and Wellness to “Hold” from “Buy,” adding to a mixed analyst outlook. The stock has one Buy, six Hold and two Sell ratings, with a consensus target price of $3.42.
• Petco reported quarterly EPS of $0.13, beating the $0.07 consensus estimate, while revenue matched expectations at $1.49 billion. Net income increased to $38.7 million, supported by stronger consumables and services performance.
• Shares opened at $2.70 after recently trading up 7.1%, but analysts remain cautious about limited revenue growth and execution risk. Management reaffirmed its flat-to-1.5% annual sales outlook and projected fiscal 2026 adjusted EBITDA of $415 million to $430 million.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other equities analysts have also recently issued reports about the company. Zacks Research cut Petco Health and Wellness from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Weiss Ratings restated a "sell (d)" rating on shares of Petco Health and Wellness in a research report on Thursday, June 11th. Citigroup cut their target price on Petco Health and Wellness from $4.00 to $3.25 and set a "neutral" rating for the company in a research note on Thursday, June 4th. UBS Group reduced their price target on shares of Petco Health and Wellness from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Thursday. Finally, Robert W. Baird lifted their price target on shares of Petco Health and Wellness from $3.00 to $3.25 and gave the stock a "neutral" rating in a research note on Thursday. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $3.42.

Petco Health and Wellness Trading Up 7.1%

Shares of Petco Health and Wellness stock opened at $2.70 on Friday. Petco Health and Wellness has a 1 year low of $2.24 and a 1 year high of $3.96. The firm has a market cap of $873.07 million, a PE ratio of 27.00, a PEG ratio of 2.92 and a beta of 1.53. The company has a debt-to-equity ratio of 1.21, a current ratio of 0.90 and a quick ratio of 0.29. The company 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 released its quarterly earnings results on Wednesday, September 2nd. The company reported $0.13 EPS for the quarter, topping analysts' consensus estimates of $0.07 by $0.06. The business had revenue of $1.49 billion during the quarter, compared to analysts' expectations of $1.49 billion. Petco Health and Wellness had a net margin of 0.51% and a return on equity of 3.44%. During the same quarter in the previous year, the company earned $0.05 EPS. Analysts expect that Petco Health and Wellness will post 0.09 earnings per share for the current fiscal year.

Insider Transactions at Petco Health and Wellness

In related news, insider Holly May sold 200,000 shares of the business's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $2.54, for a total transaction of $508,000.00. Following the transaction, the insider owned 1,327,867 shares in the company, valued at $3,372,782.18. The trade was a 13.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last quarter, insiders sold 450,000 shares of company stock worth $1,145,500. 6.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. California State Teachers Retirement System increased its position in shares of Petco Health and Wellness by 186.9% during the second quarter. California State Teachers Retirement System now owns 247,245 shares of the company's stock valued at $673,000 after buying an additional 161,059 shares during the period. Bank of America Corp DE lifted its stake in shares of Petco Health and Wellness by 6.7% in the 1st quarter. Bank of America Corp DE now owns 269,589 shares of the company's stock valued at $749,000 after purchasing an additional 16,825 shares during the period. Amundi bought a new stake in shares of Petco Health and Wellness during the first quarter valued at approximately $54,000. Renaissance Technologies LLC bought a new stake in shares of Petco Health and Wellness during the first quarter valued at approximately $1,455,000. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in Petco Health and Wellness in the first quarter worth $527,000.

Key Headlines Impacting Petco Health and Wellness

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

• Positive Sentiment: Petco reported fiscal Q2 earnings per share of $0.13, above the $0.07 consensus estimate and up from $0.05 a year earlier. Adjusted earnings were reported at $0.16 by Zacks, also exceeding expectations. Revenue was approximately $1.49 billion, in line with forecasts. Petco Q2 EPS beat
• Positive Sentiment: Net income rose to $38.7 million, while operating cash flow nearly doubled. Management attributed part of the improvement to stronger consumables and services performance, omnichannel initiatives, and a one-time tariff refund. Petco turnaround gains
• Positive Sentiment: Petco reaffirmed its flat-to-1.5% full-year sales outlook and forecast fiscal 2026 adjusted EBITDA of $415 million to $430 million, supporting the view that cost controls and operational improvements can drive earnings even without significant sales growth. Petco fiscal 2026 outlook
• Neutral Sentiment: Analyst opinions remain divided. RBC Capital maintained a Buy rating, while Morgan Stanley kept a Hold rating. Robert W. Baird raised its price target to $3.25 but retained a Neutral rating. RBC Buy rating
• Negative Sentiment: BNP Paribas Exane cut its price target to $2.11 and assigned an Underperform rating. UBS lowered its target to $3.50 and retained a Neutral rating, underscoring concerns about limited revenue momentum and execution risk. Analyst caution after Petco earnings

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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