Petco Health and Wellness (NASDAQ:WOOF) Posts Earnings Results

Key Points

• Petco exceeded earnings expectations, reporting quarterly EPS of $0.13 versus the $0.07 analyst consensus. Revenue reached $1.49 billion, in line with estimates.
• Shares rose $0.05 to $2.63 during Wednesday trading, while the company continued to show weak liquidity with a 0.29 quick ratio and 0.85 current ratio.
• Analyst sentiment remains cautious: WOOF has a consensus “Hold” rating from analysts, with an average price target of $3.85. Insiders have sold 450,000 shares worth about $1.15 million over the past 90 days.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.13 earnings per share for the quarter, beating analysts' consensus estimates of $0.07 by $0.06, FiscalAI reports. The firm had revenue of $1.49 billion for the quarter, compared to analyst estimates of $1.49 billion. Petco Health and Wellness had a net margin of 0.09% and a return on equity of 1.36%.

Petco Health and Wellness Stock Performance

NASDAQ:WOOF traded up $0.05 during trading hours on Wednesday, reaching $2.63. The stock had a trading volume of 4,324,148 shares, compared to its average volume of 2,104,732. Petco Health and Wellness has a 12-month low of $2.24 and a 12-month 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 50 day simple moving average of $2.71 and a 200 day simple moving average of $2.74. The stock has a market cap of $850.44 million, a P/E ratio of 131.57, a price-to-earnings-growth ratio of 3.09 and a beta of 1.53.

Insiders Place Their Bets

In other Petco Health and Wellness news, insider Holly May sold 200,000 shares of the stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $2.54, for a total transaction of $508,000.00. Following the completion of the transaction, the insider owned 1,327,867 shares in the company, valued at $3,372,782.18. This trade represents a 13.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Over the last ninety days, insiders sold 450,000 shares of company stock valued at $1,145,500. Company insiders own 6.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of WOOF. Zacks Investment Management bought a new position in shares of Petco Health and Wellness in the fourth quarter worth $94,000. Gotham Asset Management LLC lifted its holdings in Petco Health and Wellness by 33.9% during the 4th quarter. Gotham Asset Management LLC now owns 319,035 shares of the company's stock worth $896,000 after purchasing an additional 80,804 shares in the last quarter. Schonfeld Strategic Advisors LLC bought a new position in Petco Health and Wellness in the 4th quarter worth about $108,000. Abel Hall LLC purchased a new position in Petco Health and Wellness during the 4th quarter valued at about $31,000. Finally, Jump Financial LLC bought a new stake in shares of Petco Health and Wellness during the fourth quarter valued at about $866,000.

Wall Street Analysts Forecast Growth

WOOF has been the topic of several analyst reports. Wall Street Zen raised Petco Health and Wellness from a "hold" rating to a "buy" rating in a research report on Saturday, July 4th. Zacks Research downgraded shares of Petco Health and Wellness from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Citigroup lowered their target price on shares of Petco Health and Wellness from $4.00 to $3.25 and set a "neutral" rating for the company in a report on Thursday, June 4th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Petco Health and Wellness in a research report on Thursday, June 11th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $3.85.

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.

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