Central Garden & Pet (NASDAQ:CENTA) Shares Down 10.1% - What's Next?

Key Points

• Central Garden & Pet's shares experienced a 10.1% decline, trading at $32.14 after previously closing at $35.74.
• Analysts have adjusted their target prices, with JPMorgan lowering it to $31.00 while Truist Financial set a revised target of $35.00.
• The company reported earnings per share of $1.56, surpassing expectations, though revenue fell short of estimates at $960.91 million.

Central Garden & Pet Company (NASDAQ:CENTA - Get Free Report) shares fell 10.1% during mid-day trading on Thursday . The stock traded as low as $32.23 and last traded at $32.14. 507,247 shares traded hands during trading, an increase of 41% from the average session volume of 360,536 shares. The stock had previously closed at $35.74.

Analyst Ratings Changes

Several brokerages recently weighed in on CENTA. JPMorgan Chase & Co. reduced their target price on shares of Central Garden & Pet from $34.00 to $31.00 and set a "neutral" rating on the stock in a report on Friday, April 11th. Truist Financial reaffirmed a "hold" rating and issued a $35.00 target price (down previously from $40.00) on shares of Central Garden & Pet in a report on Wednesday, April 30th. Finally, Wall Street Zen raised shares of Central Garden & Pet from a "hold" rating to a "buy" rating in a report on Tuesday, May 20th.

Central Garden & Pet Stock Down 11.2%

The company has a market capitalization of $2.08 billion, a PE ratio of 16.97 and a beta of 0.67. The firm's 50-day simple moving average is $33.18 and its 200 day simple moving average is $32.15. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.93 and a current ratio of 3.31.

Central Garden & Pet (NASDAQ:CENTA - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $1.56 EPS for the quarter, topping the consensus estimate of $1.34 by $0.22. The company had revenue of $960.91 million for the quarter, compared to analyst estimates of $993.66 million. Central Garden & Pet had a net margin of 3.90% and a return on equity of 10.14%. As a group, equities research analysts forecast that Central Garden & Pet Company will post 2.38 earnings per share for the current year.

Insider Activity

In related news, Chairman William E. Brown sold 60,000 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $32.39, for a total value of $1,943,400.00. Following the completion of the transaction, the chairman owned 1,070,365 shares of the company's stock, valued at approximately $34,669,122.35. The trade was a 5.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last three months, insiders sold 107,800 shares of company stock worth $3,490,112. Insiders own 20.28% of the company's stock.

Institutional Trading of Central Garden & Pet

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fox Run Management L.L.C. purchased a new stake in shares of Central Garden & Pet during the 2nd quarter worth about $696,000. Bank of New York Mellon Corp grew its holdings in shares of Central Garden & Pet by 1.0% during the 2nd quarter. Bank of New York Mellon Corp now owns 405,275 shares of the company's stock worth $12,681,000 after purchasing an additional 3,998 shares during the period. GHP Investment Advisors Inc. grew its holdings in shares of Central Garden & Pet by 3.9% during the 2nd quarter. GHP Investment Advisors Inc. now owns 95,946 shares of the company's stock worth $3,002,000 after purchasing an additional 3,599 shares during the period. Teacher Retirement System of Texas boosted its holdings in Central Garden & Pet by 3.9% in the 2nd quarter. Teacher Retirement System of Texas now owns 8,088 shares of the company's stock worth $253,000 after acquiring an additional 304 shares during the period. Finally, Brighton Jones LLC boosted its holdings in Central Garden & Pet by 14.6% in the 2nd quarter. Brighton Jones LLC now owns 7,895 shares of the company's stock worth $247,000 after acquiring an additional 1,008 shares during the period. Hedge funds and other institutional investors own 50.82% of the company's stock.

Central Garden & Pet Company Profile

Central Garden & Pet Co engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions.

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