Pets at Home Group (LON:PETS) Shares Down 15.9% on Analyst Downgrade

Key Points

• Pets at Home Group Plc shares plummeted by 15.9% during trading on Thursday, closing at GBX 192 ($2.62), following a previous close of GBX 228.40 ($3.11).
• Analysts have mixed opinions on the stock, with two rating it as a buy and one as a hold, while the consensus price target is GBX 273.33.
• The company recently authorized a stock buyback plan, which typically indicates that the board believes the stock is undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) dropped 15.9% during 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 ($2.37) and last traded at GBX 192 ($2.59). Approximately 9,022,646 shares traded hands during trading, an increase of 274% from the average daily volume of 2,413,569 shares. The stock had previously closed at GBX 228.40 ($3.09).

A number of other brokerages have also recently issued reports on PETS. Shore Capital reaffirmed a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft decreased their target price on Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating for the company in a research note on Thursday. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of GBX 235.

Pets at Home Group Trading Up 2.7%

The firm has a fifty day simple moving average of GBX 228.65 and a 200-day simple moving average of GBX 239.53. The firm has a market cap of £890.14 million, a P/E ratio of 1,053.09, a price-to-earnings-growth 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.

Pets at Home Group declared that its Board of Directors has initiated a stock repurchase program on Monday, June 9th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase programs are usually an indication 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.