Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Petco has a consensus “Reduce” rating from nine analysts, including two sells, six holds and one buy, with an average 12-month price target of $3.42.
• The company exceeded second-quarter earnings expectations, reporting $0.13 EPS versus the $0.07 consensus and $1.49 billion in revenue. Net income and operating cash flow also improved, supported by stronger consumables, services and operational initiatives.
• Despite the earnings beat, analysts remain cautious about limited revenue momentum and execution risk; Petco reaffirmed a flat-to-1.5% annual sales outlook and forecast fiscal 2026 adjusted EBITDA of $415 million to $430 million.

Shares of Petco Health and Wellness Company, Inc. (NASDAQ:WOOF - Get Free Report) have been assigned a consensus rating of "Reduce" from the nine analysts that are covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $3.42.

A number of research firms recently weighed in on WOOF. BNP Paribas Exane lowered their target price on shares of Petco Health and Wellness from $2.34 to $2.11 and set an "underperform" rating on the stock in a research note on Thursday. Citigroup lowered their price objective on Petco Health and Wellness from $4.00 to $3.25 and set a "neutral" rating on the stock in a research note on Thursday, June 4th. UBS Group cut their target price on Petco Health and Wellness from $4.00 to $3.50 and set a "neutral" rating for the company in a research report on Thursday. Wall Street Zen lowered Petco Health and Wellness from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Zacks Research cut Petco Health and Wellness from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 18th.

Key Petco Health and Wellness News

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

Petco Health and Wellness Price Performance

NASDAQ WOOF 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 company has a fifty day simple moving average of $2.71 and a 200 day simple moving average of $2.74. The company has a current ratio of 0.90, a quick ratio of 0.29 and a debt-to-equity ratio of 1.21. The company has a market cap of $873.06 million, a P/E ratio of 27.00, a P/E/G ratio of 3.13 and a beta of 1.53.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last released its earnings results on Wednesday, September 2nd. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.07 by $0.06. The firm had revenue of $1.49 billion during the quarter, compared to analyst estimates 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 business earned $0.05 EPS. On average, sell-side analysts predict that Petco Health and Wellness will post 0.1 EPS for the current year.

Insider Buying and Selling at Petco Health and Wellness

In other news, insider Holly May sold 200,000 shares of the company's stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $2.54, for a total value of $508,000.00. Following the sale, the insider owned 1,327,867 shares of the company's stock, valued at approximately $3,372,782.18. This represents a 13.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Over the last 90 days, insiders have sold 450,000 shares of company stock valued at $1,145,500. 6.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Petco Health and Wellness

Large investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd increased its holdings in shares of Petco Health and Wellness by 425.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 10,523 shares of the company's stock worth $30,000 after buying an additional 8,519 shares in the last quarter. Abel Hall LLC bought a new stake in Petco Health and Wellness during the 4th quarter worth approximately $31,000. Cibc World Market Inc. acquired a new stake in Petco Health and Wellness during the 4th quarter valued at $32,000. HB Wealth Management LLC acquired a new stake in Petco Health and Wellness during the 1st quarter valued at $34,000. Finally, Quantbot Technologies LP bought a new position in Petco Health and Wellness in the 3rd quarter valued at $34,000.

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.