Pets at Home Group (LON:PETS) Trading Down 16.7% - Should You Sell?

Key Points

• Pets at Home Group's shares dropped by 16.7%, trading as low as GBX 175.50 ($2.38) and closing at GBX 190.20 ($2.58), following a significant increase in trading volume.
• Analysts have mixed opinions on the stock, with Canaccord Genuity setting a target price of GBX 300, while Deutsche Bank reduced its target from GBX 285 to GBX 275.
• The company's board has initiated a share repurchase plan, indicating a belief that the shares are undervalued despite recent price drops.

Pets at Home Group Plc (LON:PETS - Get Free Report) fell 16.7% during mid-day trading on Thursday . The company traded as low as GBX 175.50 ($2.36) and last traded at GBX 190.20 ($2.56). 9,942,952 shares traded hands during trading, an increase of 311% from the average session volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.08).

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on PETS shares. Canaccord Genuity Group reiterated a "buy" rating and issued a GBX 300 target price on shares of Pets at Home Group in a research note on Thursday, May 29th. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday, July 31st. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on shares of Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating on the stock in a research report on Thursday. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 253.33.

Pets at Home Group Stock Performance

The firm's 50-day moving average price is GBX 229.57 and its 200-day moving average price is GBX 239.76. The stock has a market cap of £866.85 million, a P/E ratio of 1,025.53, a PEG ratio of 2.66 and a beta of 0.69. The company has a debt-to-equity ratio of 43.13, a current ratio of 0.63 and a quick ratio of 0.57.

Pets at Home Group announced that its Board of Directors has authorized a stock repurchase program on Monday, June 9th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is 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.