Petco Health and Wellness (NASDAQ:WOOF) Upgraded to Buy at Wall Street Zen

Key Points

• Petco Health and Wellness was upgraded from “hold” to “buy” by Wall Street Zen, adding to a mixed but slightly improving analyst backdrop for the stock.
• Despite the upgrade, the broader analyst consensus remains cautious: MarketBeat reports an average rating of “Hold” and an average target price of $4.04, with several firms recently adjusting targets and ratings in both directions.
• The company’s latest quarter showed mixed results, with revenue of $1.52 billion slightly above estimates but EPS of -$0.01 missing expectations; shares were trading at $2.81, well below the stock’s 52-week high of $4.51.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

A number of other research firms have also recently commented on WOOF. Citigroup increased their price target on shares of Petco Health and Wellness from $3.50 to $4.00 and gave the company a "neutral" rating in a report on Monday, March 16th. Evercore cut their price target on shares of Petco Health and Wellness from $4.00 to $3.00 and set an "in-line" rating on the stock in a report on Tuesday, February 3rd. Zacks Research upgraded shares of Petco Health and Wellness from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 7th. The Goldman Sachs Group cut shares of Petco Health and Wellness from a "buy" rating to a "neutral" rating and set a $3.83 price target on the stock. in a report on Monday, April 13th. Finally, UBS Group increased their price target on shares of Petco Health and Wellness from $3.50 to $4.00 and gave the company a "neutral" rating in a report on Monday, March 16th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Petco Health and Wellness currently has an average rating of "Hold" and an average target price of $4.04.

Petco Health and Wellness Stock Performance

Shares of WOOF opened at $2.81 on Friday. The company has a quick ratio of 0.38, a current ratio of 0.90 and a debt-to-equity ratio of 1.28. The business's 50 day moving average price is $2.81 and its 200-day moving average price is $2.92. Petco Health and Wellness has a 52 week low of $2.24 and a 52 week high of $4.51. The stock has a market cap of $905.24 million, a P/E ratio of 93.67, a P/E/G ratio of 3.56 and a beta of 1.53.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last issued its quarterly earnings results on Wednesday, March 11th. The company reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). Petco Health and Wellness had a return on equity of 0.89% and a net margin of 0.15%.The company had revenue of $1.52 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the prior year, the firm earned ($0.05) earnings per share. The business's revenue for the quarter was down 2.4% compared to the same quarter last year. Equities research analysts anticipate that Petco Health and Wellness will post 0.07 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. lifted its position in Petco Health and Wellness by 280.4% during the third quarter. JPMorgan Chase & Co. now owns 832,412 shares of the company's stock valued at $3,221,000 after purchasing an additional 613,591 shares during the period. Candlestick Capital Management LP bought a new position in Petco Health and Wellness during the third quarter valued at approximately $6,772,000. Union Square Park Capital Management LLC bought a new position in Petco Health and Wellness during the third quarter valued at approximately $677,000. SG Americas Securities LLC lifted its position in Petco Health and Wellness by 59.9% during the fourth quarter. SG Americas Securities LLC now owns 90,410 shares of the company's stock valued at $254,000 after purchasing an additional 33,878 shares during the period. Finally, Greenfield Seitz Capital Management LLC lifted its position in Petco Health and Wellness by 64.4% during the third quarter. Greenfield Seitz Capital Management LLC now owns 60,000 shares of the company's stock valued at $232,000 after purchasing an additional 23,500 shares during the period.

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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