Petco Health and Wellness (NASDAQ:WOOF) Cut to Hold at Wall Street Zen

Key Points

• Petco Health and Wellness has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, reflecting a cautious outlook from analysts.
• Analysts' ratings for Petco Health and Wellness show a mixed sentiment, with one strong buy, three buys, and seven holds, alongside a consensus price target of $3.95.
• In its recent earnings report, Petco reported a 2.3% year-over-year decline in revenue, despite surpassing EPS estimates with a profit of $0.05.

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

A number of other equities analysts also recently commented on WOOF. Morgan Stanley cut their price objective on Petco Health and Wellness from $5.00 to $4.50 and set an "equal weight" rating on the stock in a report on Friday, June 6th. Guggenheim restated a "neutral" rating on shares of Petco Health and Wellness in a report on Tuesday, September 2nd. Jefferies Financial Group lifted their price target on shares of Petco Health and Wellness from $4.05 to $4.15 and gave the company a "hold" rating in a research report on Friday, August 29th. UBS Group increased their price objective on shares of Petco Health and Wellness from $3.25 to $3.70 and gave the stock a "neutral" rating in a research report on Friday, August 29th. Finally, Zacks Research upgraded shares of Petco Health and Wellness from a "hold" rating to a "strong-buy" rating in a report on Thursday, September 4th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $3.95.

Petco Health and Wellness Stock Performance

NASDAQ:WOOF opened at $3.50 on Friday. The company has a market cap of $1.11 billion, a P/E ratio of -35.00 and a beta of 1.74. The firm's 50 day moving average is $3.43 and its two-hundred day moving average is $3.16. Petco Health and Wellness has a fifty-two week low of $2.28 and a fifty-two week high of $6.29. The company has a quick ratio of 0.31, a current ratio of 0.89 and a debt-to-equity ratio of 1.39.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last released its quarterly earnings data on Thursday, August 28th. The company reported $0.05 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.03. The business had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $1.49 billion. Petco Health and Wellness had a negative return on equity of 1.71% and a negative net margin of 0.47%.The business's revenue for the quarter was down 2.3% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.02) EPS. Analysts expect that Petco Health and Wellness will post -0.22 EPS for the current year.

Institutional Investors Weigh In On Petco Health and Wellness

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WOOF. Long Focus Capital Management LLC acquired a new stake in shares of Petco Health and Wellness during the first quarter valued at about $12,923,000. Solas Capital Management LLC purchased a new position in Petco Health and Wellness in the first quarter valued at about $9,150,000. Cresset Asset Management LLC acquired a new stake in Petco Health and Wellness during the 1st quarter valued at approximately $7,675,000. Nuveen LLC purchased a new stake in Petco Health and Wellness during the 1st quarter worth approximately $6,341,000. Finally, Holocene Advisors LP raised its position in shares of Petco Health and Wellness by 57.5% in the 2nd quarter. Holocene Advisors LP now owns 4,291,073 shares of the company's stock valued at $12,144,000 after purchasing an additional 1,566,709 shares in the last quarter.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc, operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.