Pets at Home Group (LON:PETS) Stock Price Down 14.6% Following Analyst Downgrade

Key Points

• Pets at Home Group shares dropped 14.6%, trading as low as GBX 175.50, with volumes increasing by 380% compared to the average session.
• Analysts have mixed views, with Canaccord Genuity maintaining a "buy" rating and a price target of GBX 300, while Deutsche Bank lowered their target from GBX 285 to GBX 275.
• The company has initiated a stock repurchase plan, often indicating that the board believes the stock is undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) shares were down 14.6% during mid-day 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 ($2.36) and last traded at GBX 195 ($2.63). Approximately 11,650,430 shares traded hands during trading, an increase of 380% from the average daily volume of 2,428,087 shares. The stock had previously closed at GBX 228.40 ($3.08).

A number of other equities research analysts have also recently weighed in on the stock. Shore Capital restated a "no recommendation" rating on shares of Pets at Home Group in a research note on Thursday, July 31st. Deutsche Bank Aktiengesellschaft cut their price target on shares of Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating for the company in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently 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 market cap of £890.14 million, a price-to-earnings ratio of 1,053.09, a P/E/G ratio of 2.66 and a beta of 0.69. 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 moving average price of GBX 229.57 and a two-hundred day moving average price of GBX 239.79.

Pets at Home Group announced that its Board of Directors has approved a stock buyback plan 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. Shares repurchase plans are generally an indication that the company's board 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.