Pets at Home Group (LON:PETS) Shares Down 15.5% on Analyst Downgrade

Key Points

• Shares of Pets at Home Group Plc dropped 15.5% to GBX 192.90 ($2.63) after trading at a low of GBX 175.50 ($2.39), with trading volume increasing by 406% compared to average volume.
• Wall Street analysts have mixed views, with two analysts rating the stock as a "Buy" and one as "Hold," while Deutsche Bank has reduced its price target from GBX 285 to GBX 275.
• The company announced a stock repurchase plan aimed at buying back shares, indicating management's belief that the stock is currently undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) fell 15.5% 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 192.90 ($2.60). 12,314,171 shares traded hands during trading, an increase of 406% from the average session volume of 2,431,754 shares. The stock had previously closed at GBX 228.40 ($3.08).

Several other research analysts also recently commented on PETS. 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 restated 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 given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 235.

Pets at Home Group Stock Up 2.7%

The company has a market capitalization of £890.14 million, a P/E ratio of 1,053.09, a PEG ratio of 2.66 and a beta of 0.69. 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 company has a 50 day moving average of GBX 229.57 and a 200-day moving average of GBX 239.79.

Pets at Home Group declared that its board has initiated a stock buyback plan on Monday, June 9th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company's board 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.