Pets at Home Group (LON:PETS) Shares Down 16.7% on Analyst Downgrade

Key Points

• Pets at Home Group shares fell 16.7%, closing at GBX 190.20 ($2.59) after trading as low as GBX 175.50 ($2.39), with trading volume exceeding three times the average.
• Despite the sharp decline in stock price, analysts maintain a consensus rating of "Moderate Buy" with a target price averaging GBX 273.33, highlighting investment interest.
• The company recently approved a stock buyback plan, signaling that its board believes its shares are undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) shares were down 16.7% during mid-day trading 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 190.20 ($2.56). Approximately 9,942,952 shares changed hands during mid-day trading, an increase of 311% from the average daily volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.08).

A number of other research firms have also commented on PETS. Canaccord Genuity Group reissued 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. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday, July 31st. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of GBX 253.33.

Pets at Home Group Price Performance

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 stock has a market cap of £866.85 million, a P/E ratio of 1,025.53, a P/E/G ratio of 2.66 and a beta of 0.69. The business has a 50 day simple moving average of GBX 229.57 and a 200-day simple moving average of GBX 239.79.

Pets at Home Group declared that its board has authorized a stock repurchase program on Monday, June 9th that permits the company to buyback 0 shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Pets at Home Group Company Profile

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.