Pets at Home Group (LON:PETS) Stock Price Down 16.3% on 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.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s stock price dropped 16.3% during trading 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 191.20 ($2.58). Approximately 12,202,730 shares were traded during 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 analysts have also recently weighed in on the company. Canaccord Genuity Group restated a "buy" rating and issued a GBX 300 price target on shares of Pets at Home Group in a research note on Thursday, May 29th. Shore Capital restated a "no recommendation" rating on shares of Pets at Home Group in a research note on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of GBX 253.33.

Pets at Home Group Stock Performance

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 stock has a fifty day moving average of GBX 229.57 and a 200-day moving average of GBX 239.79. The stock has a market cap of £866.85 million, a PE ratio of 1,025.53, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69.

Pets at Home Group declared that its board 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. Shares buyback programs are typically an indication 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.