Petco Health and Wellness (NASDAQ:WOOF) Earns Outperform Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada has reiterated an "outperform" rating for Petco Health and Wellness (NASDAQ: WOOF) with a price objective of $4.00, indicating a potential upside of 16.79% from its current price.
• Petco reported a quarterly earnings per share of $0.05, beating analysts' expectations, but also faced a 2.3% revenue decline year-over-year.
• Several institutional investors increased their stakes in Petco, with Vanguard Group growing its holdings by 8.5% in the last quarter.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report)'s stock had its "outperform" rating reiterated by Royal Bank Of Canada in a research note issued on Wednesday,Benzinga reports. They currently have a $4.00 price objective on the stock. Royal Bank Of Canada's price objective points to a potential upside of 16.79% from the stock's current price.

A number of other research firms have also issued reports on WOOF. UBS Group lifted their price objective on shares of Petco Health and Wellness from $3.25 to $3.70 and gave the company a "neutral" rating in a research note on Friday, August 29th. Jefferies Financial Group lifted their price target on shares of Petco Health and Wellness from $4.05 to $4.15 and gave the stock a "hold" rating in a research note on Friday, August 29th. Wells Fargo & Company lifted their price target on shares of Petco Health and Wellness from $3.50 to $4.00 and gave the stock an "equal weight" rating in a research note on Friday, August 29th. Guggenheim restated a "neutral" rating on shares of Petco Health and Wellness in a research note on Tuesday. Finally, Morgan Stanley dropped their price target on shares of Petco Health and Wellness from $5.00 to $4.50 and set an "equal weight" rating for the company in a research note on Friday, June 6th. Three research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, Petco Health and Wellness currently has an average rating of "Hold" and a consensus target price of $3.95.

Petco Health and Wellness Trading Down 5.4%

WOOF stock traded down $0.20 during midday trading on Wednesday, reaching $3.43. 637,888 shares of the company's stock traded hands, compared to its average volume of 4,366,308. The company has a market capitalization of $1.08 billion, a P/E ratio of -34.25 and a beta of 1.74. The company has a debt-to-equity ratio of 1.39, a current ratio of 0.89 and a quick ratio of 0.25. Petco Health and Wellness has a fifty-two week low of $2.28 and a fifty-two week high of $6.29. The business has a 50-day moving average price of $3.23 and a two-hundred day moving average price of $3.06.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last announced its quarterly earnings results on Thursday, August 28th. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. The firm had revenue of $1.49 billion for the quarter, compared to analysts' expectations of $1.49 billion. Petco Health and Wellness had a negative net margin of 0.47% and a negative return on equity of 1.71%. Petco Health and Wellness's revenue was down 2.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.02) earnings per share. Equities research analysts forecast that Petco Health and Wellness will post -0.22 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WOOF. Vanguard Group Inc. grew its holdings in shares of Petco Health and Wellness by 8.5% during the 1st quarter. Vanguard Group Inc. now owns 8,691,631 shares of the company's stock worth $26,509,000 after purchasing an additional 682,099 shares in the last quarter. Holocene Advisors LP grew its stake in Petco Health and Wellness by 57.5% during the second quarter. Holocene Advisors LP now owns 4,291,073 shares of the company's stock worth $12,144,000 after purchasing an additional 1,566,709 shares during the period. Long Focus Capital Management LLC acquired a new stake in Petco Health and Wellness during the first quarter worth approximately $12,923,000. Goldman Sachs Group Inc. grew its stake in Petco Health and Wellness by 60.2% during the first quarter. Goldman Sachs Group Inc. now owns 3,637,695 shares of the company's stock worth $11,095,000 after purchasing an additional 1,367,299 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in Petco Health and Wellness by 269.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,242,546 shares of the company's stock valued at $12,354,000 after acquiring an additional 2,365,654 shares during the period.

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.

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