Pets at Home Group (LON:PETS) Stock Price Down 13.7% After Analyst Downgrade

Key Points

• Pets at Home Group's shares dropped 13.7% on Thursday, falling to as low as GBX 175.50 ($2.39) before recovering slightly to last trade at GBX 197.20 ($2.69).
• Despite the recent decline, analysts maintain a generally positive outlook with a consensus rating of "Moderate Buy" and a price target of GBX 273.33.
• The company has initiated a share buyback program, indicating that its board believes the stock may be undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) shares fell 13.7% on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 275 to GBX 215. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock. Pets at Home Group traded as low as GBX 175.50 ($2.36) and last traded at GBX 197.20 ($2.66). 10,946,981 shares traded hands during mid-day trading, an increase of 352% from the average session volume of 2,424,200 shares. The stock had previously closed at GBX 228.40 ($3.08).

A number of other analysts also recently issued reports on PETS. Canaccord Genuity Group reiterated a "buy" rating and set a GBX 300 price target on shares of Pets at Home Group in a research report on Thursday, May 29th. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of GBX 253.33.

Pets at Home Group Stock Down 0.1%

The company has a debt-to-equity ratio of 43.13, a current ratio of 0.63 and a quick ratio of 0.57. The stock has a market capitalization of £866.85 million, a PE ratio of 1,025.53, a PEG ratio of 2.66 and a beta of 0.69. The company has a 50 day moving average price of GBX 229.57 and a 200-day moving average price of GBX 239.76.

Pets at Home Group announced that its board has authorized a stock buyback plan on Monday, June 9th that permits the company to buyback 0 outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

About Pets at Home Group

We are the UK's leading pet care business, providing pet owners with everything they need to be able to look after their pet – from food, toys and bedding, and grooming services, right the way through to first opinion veterinary care. Our stores represent a unique environment and provide a practical, fun and unique experience for pet owners.