Pets at Home Group (LON:PETS) Stock Passes Below 200 Day Moving Average - Should You Sell?

Key Points

• Pets at Home Group Plc shares have fallen below their 200-day moving average, trading as low as GBX 223.80 ($3.04) before closing at GBX 226.19 ($3.07).
• Analysts have differing ratings for the stock, with Deutsche Bank lowering its target price from GBX 285 to GBX 275 while Canaccord Genuity maintains a buy rating with a target of GBX 300.
• The company has authorized a stock buyback plan, indicating that the leadership believes the shares are undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of GBX 240.59 ($3.28) and traded as low as GBX 223.80 ($3.05). Pets at Home Group shares last traded at GBX 226.19 ($3.09), with a volume of 784,532 shares.

Analyst Ratings Changes

PETS has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft cut their target price on shares of Pets at Home Group from GBX 285 to GBX 275 and set a "buy" rating for the company in a research note on Friday, August 1st. Canaccord Genuity Group reaffirmed a "buy" rating and set a GBX 300 price target on shares of Pets at Home Group in a report on Thursday, May 29th. Finally, Shore Capital reiterated a "no recommendation" rating on shares of Pets at Home Group in a research 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 data from MarketBeat.com, Pets at Home Group has an average rating of "Moderate Buy" and a consensus target price of GBX 273.33.

Pets at Home Group Stock Up 1.3%

The firm has a market cap of £1.03 billion, a P/E ratio of 1,222.09, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69. The stock's 50 day simple moving average is GBX 232.05 and its 200 day simple moving average is GBX 240.35. The company has a debt-to-equity ratio of 43.13, a quick ratio of 0.57 and a current ratio of 0.63.

Pets at Home Group announced that its board has initiated a stock buyback program on Monday, June 9th that permits the company to repurchase 0 shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board of directors 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.