Pets at Home Group (LON:PETS) Stock Passes Below 200 Day Moving Average - What's Next?

Key Points

• Pets at Home Group's stock has fallen below its 200-day moving average, trading at GBX 224 ($3.01), indicating a downturn in investor sentiment.
• Brokerages have issued mixed ratings, with two analysts giving a "Buy" rating and one a "Hold"; the average price target stands at GBX 273.33.
• The company has authorized a stock repurchase program, suggesting management believes its shares are undervalued in the current market.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of GBX 240.60 ($3.25) and traded as low as GBX 220.40 ($2.97). Pets at Home Group shares last traded at GBX 224 ($3.02), with a volume of 895,396 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have weighed in on PETS. Shore Capital reaffirmed a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday, July 31st. Canaccord Genuity Group reiterated a "buy" rating and issued a GBX 300 target price on shares of Pets at Home Group in a research report on Thursday, May 29th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on Pets at Home Group from GBX 285 to GBX 275 and set a "buy" rating on the stock in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of GBX 273.33.

Pets at Home Group Price Performance

The company has a current ratio of 0.63, a quick ratio of 0.57 and a debt-to-equity ratio of 43.13. The business has a fifty day simple moving average of GBX 235.91 and a 200 day simple moving average of GBX 240.80. The stock has a market capitalization of £1.04 billion, a P/E ratio of 1,226.95, 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 authorized a stock buyback program on Monday, June 9th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors 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.