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

Key Points

• Pets at Home Group's stock experienced a significant decline, dropping 16.7% to a trading price of GBX 190.20 ($2.58) after closing at GBX 228.40 ($3.10).
• Despite the recent downturn, analysts have mixed views on the stock, with two affirming a "buy" rating and setting targets as high as GBX 300, while Deutsche Bank lowered its target from GBX 285 to GBX 275.
• The company has initiated a stock repurchase program, indicating that its leadership believes the stock may be undervalued amidst the current market conditions.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price fell 16.7% during mid-day trading on Friday 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). 9,942,952 shares were traded 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 ($3.09).

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

Pets at Home Group Trading Up 2.7%

The company has a debt-to-equity ratio of 43.13, a current ratio of 0.63 and a quick ratio of 0.57. The firm's 50 day moving average is GBX 228.65 and its 200 day moving average is GBX 239.53. The company has a market capitalization of £890.14 million, a PE 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 approved a stock repurchase program on Monday, June 9th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are usually 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.