Pets at Home Group (LON:PETS) Trading Down 16.7% Following Analyst Downgrade

Key Points

• Pets at Home Group's stock price dropped by 16.7% to GBX 190.20 ($2.58) during trading, significantly lower than its previous close of GBX 228.40 ($3.10).
• Analysts have mixed views on the stock, with two giving it a Buy rating and one a Hold rating, leading to a consensus rating of "Moderate Buy" and a target price of approximately GBX 273.33.
• The company has initiated a share buyback program, indicating confidence from the board that the stock is currently undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s stock price fell 16.7% during trading on Friday 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 190.20 ($2.57). 9,942,952 shares changed hands during mid-day trading, an increase of 311% from the average session volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.09).

PETS has been the topic of several other research reports. 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 price objective on shares of Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating for the company in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of GBX 235.

Pets at Home Group Stock Performance

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 firm has a fifty day moving average price of GBX 228.65 and a two-hundred day moving average price of GBX 239.53. The stock has a market capitalization of £890.14 million, a PE ratio of 1,053.09, a P/E/G ratio of 2.66 and a beta of 0.69.

Pets at Home Group announced that its board has authorized a stock repurchase program on Monday, June 9th that allows the company to buyback 0 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management 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.