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

Key Points

• The stock price of Pets at Home Group declined by 16.7% in a single trading session, closing at GBX 190.20, down from GBX 228.40.
• Despite the recent drop, analysts maintain a Moderate Buy rating on the stock, with a price target averaging GBX 273.33.
• The company has initiated a stock buyback program, signaling that the board believes the shares are currently undervalued.

Shares of Pets at Home Group Plc (LON:PETS - Get Free Report) were down 16.7% 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 190.20 ($2.57). Approximately 9,942,952 shares traded hands during trading, an increase of 311% from the average daily volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.09).

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

Pets at Home Group Price Performance

The firm has a market cap of £890.14 million, a price-to-earnings ratio of 1,053.09, a PEG ratio of 2.66 and a beta of 0.69. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 43.13. The company's 50-day moving average price is GBX 228.65 and its 200-day moving average price is GBX 239.53.

Pets at Home Group announced that its Board of Directors has initiated a stock buyback program on Monday, June 9th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback programs are typically 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.