Pets at Home Group (LON:PETS) Trading Down 16.7% on Analyst Downgrade

Key Points

• Pets at Home Group's shares fell 16.7%, closing at GBX 190.20 ($2.59), a significant decline from the previous close of GBX 228.40 ($3.11).
• Analysts have mixed opinions on the stock, with Deutsche Bank lowering its target price to GBX 275, while Canaccord Genuity maintains a target of GBX 300, indicating interest in potential growth.
• The company has announced a stock repurchase program, suggesting management believes its shares are currently undervalued.

Shares of Pets at Home Group Plc (LON:PETS - Get Free Report) were down 16.7% 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 190.20 ($2.57). Approximately 9,942,952 shares traded hands during mid-day trading, an increase of 311% from the average daily volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.09).

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

Pets at Home Group Price Performance

The company has a 50 day moving average of GBX 228.65 and a two-hundred day moving average of GBX 239.53. The firm 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. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 43.13.

Pets at Home Group announced that its board has approved a stock repurchase plan on Monday, June 9th that allows the company to buyback 0 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company's board of directors 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.