Pets at Home Group (LON:PETS) Stock Price Down 13.7% Following 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) dropped 13.7% on Thursday after Canaccord Genuity Group lowered their price target on the stock from GBX 285 to GBX 245. Canaccord Genuity Group currently has a buy rating on the stock. Pets at Home Group traded as low as GBX 175.50 ($2.37) and last traded at GBX 197.20 ($2.67). Approximately 10,946,981 shares were traded during trading, an increase of 352% from the average daily volume of 2,424,200 shares. The stock had previously closed at GBX 228.40 ($3.09).

A number of other equities analysts have also commented on PETS. Shore Capital restated a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft cut their target price on shares of Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating for the company in a research note on Thursday. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of GBX 235.

Pets at Home Group Stock Up 2.7%

The firm's 50-day simple moving average is GBX 228.65 and its 200 day simple moving average is GBX 239.53. The company has a debt-to-equity ratio of 43.13, a quick ratio of 0.57 and a current ratio of 0.63. The company has a market cap of £890.14 million, a P/E ratio of 1,053.09, a PEG ratio of 2.66 and a beta of 0.69.

Pets at Home Group declared that its Board of Directors has initiated a share buyback program on Monday, June 9th that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are 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.