Pets at Home Group (LON:PETS) Stock Price Down 14.6% - What's Next?

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 fell 14.6% during trading on Thursday . The company traded as low as GBX 175.50 ($2.39) and last traded at GBX 195 ($2.66). 11,650,430 shares changed hands during mid-day trading, an increase of 380% from the average session volume of 2,428,087 shares. The stock had previously closed at GBX 228.40 ($3.11).

Wall Street Analysts Forecast Growth

A number of brokerages have commented on PETS. Shore Capital restated a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday, July 31st. Canaccord Genuity Group restated a "buy" rating and issued a GBX 300 price target on shares of Pets at Home Group in a research report on Thursday, May 29th. Finally, Deutsche Bank Aktiengesellschaft reduced their price target on Pets at Home Group from GBX 285 to GBX 275 and set a "buy" rating for the company 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 company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of GBX 273.33.

Pets at Home Group Stock Performance

The business has a 50 day moving average of GBX 231.69 and a 200 day moving average of GBX 240.27. The company has a market capitalization of £875.39 million, a P/E ratio of 1,035.64, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 43.13.

Pets at Home Group announced that its board has initiated a stock repurchase plan on Monday, June 9th that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its shares are 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.

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