Pets at Home Group (LON:PETS) Stock Price 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) shares fell 15.9% on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 275 to GBX 215. Deutsche Bank Aktiengesellschaft 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 ($2.59). 9,022,646 shares changed hands during trading, an increase of 274% from the average session volume of 2,413,569 shares. The stock had previously closed at GBX 228.40 ($3.08).

Other equities research analysts also recently issued research reports about the stock. Canaccord Genuity Group reaffirmed a "buy" rating and issued a GBX 300 target price on shares of Pets at Home Group in a research note on Thursday, May 29th. Shore Capital reaffirmed a "no recommendation" rating on shares of Pets at Home Group in a research note on Thursday, July 31st. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Pets at Home Group has an average rating of "Moderate Buy" and a consensus target price of GBX 253.33.

Pets at Home Group Stock Performance

The stock's 50 day moving average price is GBX 229.57 and its 200 day moving average price is GBX 239.76. The company has a debt-to-equity ratio of 43.13, a quick ratio of 0.57 and a current ratio of 0.63. The company has a market capitalization of £866.85 million, a P/E ratio of 1,025.53, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69.

Pets at Home Group declared that its board 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 usually an indication that the company's management 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.