Pets at Home Group (LON:PETS) Trading Down 16.3% Following Analyst Downgrade

Key Points

• Pets at Home Group shares fell by 16.3%, trading as low as GBX 175.50, with an increased trading volume of 12.2 million shares compared to the average of 2.4 million.
• Analysts have varied opinions on the stock, with Deutsche Bank lowering its price objective to GBX 275 while Canaccord Genuity maintains a target of GBX 300, resulting in a consensus rating of "Moderate Buy."
• The company has approved a share buyback plan, indicating management's belief that the stock is currently undervalued.

Shares of Pets at Home Group Plc (LON:PETS - Get Free Report) dropped 16.3% 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 ($2.36) and last traded at GBX 191.20 ($2.58). Approximately 12,202,730 shares traded hands during mid-day trading, an increase of 402% from the average daily volume of 2,431,138 shares. The stock had previously closed at GBX 228.40 ($3.08).

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

Pets at Home Group Trading Up 2.7%

The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 43.13. The firm's 50-day moving average price is GBX 229.57 and its 200 day moving average price is GBX 239.79. The company has a market capitalization of £890.14 million, a P/E ratio of 1,053.09, a P/E/G ratio of 2.66 and a beta of 0.69.

Pets at Home Group declared that its Board of Directors has initiated a stock buyback plan on Monday, June 9th that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Pets at Home Group Company Profile

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.