Petco Health and Wellness (NASDAQ:WOOF) Shares Down 5.9% - Time to Sell?

Key Points

• Petco Health and Wellness shares fell by 5.9% to trade at $3.76, with a significant decline in trading volume by 63% from the average daily volume.
• Analysts have set a consensus price target for the stock at $3.95, with Wells Fargo and Robert W. Baird both raising their target prices to $4.00.
• Petco recently reported earnings of $0.05 per share for the last quarter, beating analyst estimates, but revenue was down 2.3% year-over-year, leading to a negative net margin of 0.47%.

Shares of Petco Health and Wellness Company, Inc. (NASDAQ:WOOF - Get Free Report) dropped 5.9% during mid-day trading on Tuesday . The company traded as low as $3.66 and last traded at $3.76. Approximately 1,611,816 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 4,356,912 shares. The stock had previously closed at $3.99.

Analysts Set New Price Targets

A number of equities analysts recently commented on WOOF shares. Wells Fargo & Company raised their target price on Petco Health and Wellness from $3.50 to $4.00 and gave the stock an "equal weight" rating in a report on Friday. Guggenheim reaffirmed a "neutral" rating on shares of Petco Health and Wellness in a report on Tuesday. Robert W. Baird raised their target price on Petco Health and Wellness from $3.50 to $4.00 and gave the stock a "neutral" rating in a report on Friday. Jefferies Financial Group raised their target price on Petco Health and Wellness from $4.05 to $4.15 and gave the stock a "hold" rating in a report on Friday. Finally, UBS Group raised their target price on Petco Health and Wellness from $3.25 to $3.70 and gave the stock a "neutral" rating in a report on Friday. Three analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $3.95.

Petco Health and Wellness Trading Down 8.9%

The stock has a market cap of $1.15 billion, a PE ratio of -36.25 and a beta of 1.74. The stock has a 50-day moving average price of $3.21 and a two-hundred day moving average price of $3.06. The company has a debt-to-equity ratio of 1.39, a current ratio of 0.89 and a quick ratio of 0.31.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last issued its quarterly earnings data 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 during the quarter, compared to analyst estimates 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 quarterly revenue was down 2.3% compared to the same quarter last year. During the same quarter last year, the business posted ($0.02) earnings per share. Sell-side analysts forecast that Petco Health and Wellness Company, Inc. will post -0.22 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in WOOF. Brookwood Investment Group LLC purchased a new position in Petco Health and Wellness in the second quarter worth about $28,000. Focus Partners Advisor Solutions LLC bought a new stake in shares of Petco Health and Wellness during the first quarter valued at approximately $31,000. Concurrent Investment Advisors LLC bought a new stake in shares of Petco Health and Wellness during the second quarter valued at approximately $31,000. Caitong International Asset Management Co. Ltd raised its stake in Petco Health and Wellness by 747.9% in the second quarter. Caitong International Asset Management Co. Ltd now owns 11,090 shares of the company's stock worth $31,000 after buying an additional 9,782 shares in the last quarter. Finally, R Squared Ltd raised its stake in Petco Health and Wellness by 152.7% in the first quarter. R Squared Ltd now owns 10,670 shares of the company's stock worth $33,000 after buying an additional 6,447 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.

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