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

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) shares dropped 16.7% during trading 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 were traded 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).

Other analysts have also issued research reports about the company. Deutsche Bank Aktiengesellschaft cut 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. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of GBX 235.

Pets at Home Group Stock Up 2.7%

The company has a fifty day simple moving average of GBX 228.65 and a 200-day simple moving average of GBX 239.53. 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 has a market cap of £890.14 million, a P/E ratio of 1,053.09, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69.

Pets at Home Group declared that its Board of Directors has approved a stock buyback plan on Monday, June 9th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign 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.