Petco Health and Wellness (NASDAQ:WOOF) Shares Gap Up on Earnings Beat

Key Points

• Petco Health and Wellness shares experienced a gap up, opening at $3.98 after closing at $3.23, following a better-than-expected earnings report that included an EPS of $0.05, exceeding the consensus estimate.
• A number of equity analysts have adjusted their price targets for Petco, with Wells Fargo increasing it to $3.50 and Morgan Stanley reducing it to $4.50, while majority ratings are currently "Hold."
• Petco has a market capitalization of $1.24 billion and reported quarterly revenue of $1.49 billion, though this reflects a 2.3% decline year-over-year.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF - Get Free Report) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $3.23, but opened at $3.98. Petco Health and Wellness shares last traded at $4.00, with a volume of 6,237,866 shares changing hands.

The company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.02 by $0.03. Petco Health and Wellness had a negative net margin of 1.10% and a negative return on equity of 4.29%. The firm had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the previous year, the company earned ($0.02) earnings per share. The company's quarterly revenue was down 2.3% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on WOOF shares. Wells Fargo & Company boosted their target price on shares of Petco Health and Wellness from $3.00 to $3.50 and gave the company an "equal weight" rating in a research report on Friday, June 6th. Morgan Stanley dropped their price target on 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. Finally, Robert W. Baird boosted their price target on Petco Health and Wellness from $3.50 to $4.00 and gave the company a "neutral" rating in a research note on Friday. Three equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $3.81.

Institutional Trading of Petco Health and Wellness

A number of hedge funds have recently made changes to their positions in WOOF. LPL Financial LLC boosted its stake in shares of Petco Health and Wellness by 18.2% during the fourth quarter. LPL Financial LLC now owns 42,006 shares of the company's stock valued at $160,000 after purchasing an additional 6,470 shares in the last quarter. Legal & General Group Plc raised its position in shares of Petco Health and Wellness by 9.0% during the fourth quarter. Legal & General Group Plc now owns 101,983 shares of the company's stock worth $389,000 after acquiring an additional 8,397 shares during the last quarter. Barclays PLC raised its position in shares of Petco Health and Wellness by 6.0% during the fourth quarter. Barclays PLC now owns 229,599 shares of the company's stock worth $874,000 after acquiring an additional 13,035 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Petco Health and Wellness by 269.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,242,546 shares of the company's stock worth $12,354,000 after acquiring an additional 2,365,654 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in shares of Petco Health and Wellness by 203.6% during the fourth quarter. Tower Research Capital LLC TRC now owns 25,110 shares of the company's stock worth $96,000 after acquiring an additional 16,840 shares during the last quarter.

Petco Health and Wellness Stock Performance

The firm has a market capitalization of $1.24 billion, a P/E ratio of -16.35 and a beta of 1.72. The stock has a fifty day simple moving average of $3.16 and a two-hundred day simple moving average of $3.05. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.85 and a quick ratio of 0.25.

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.