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

Key Points

• Pets at Home Group's stock price fell by 16.7%, closing at GBX 190.20, marking significant trading volume with nearly 10 million shares exchanged.
• Analysts' ratings for the stock vary, with two analysts recommending a buy and one suggesting a hold, yielding an average price target of GBX 273.33.
• The company recently approved a share repurchase program, indicating management's belief that the stock is currently undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) shares dropped 16.7% during mid-day 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 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 ($3.09).

Several other equities analysts have also recently issued reports on PETS. Deutsche Bank Aktiengesellschaft reduced their price objective on Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating on the stock in a research note on Thursday. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a research note on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Pets at Home Group presently 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 market capitalization of £890.14 million, a price-to-earnings ratio of 1,053.09, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69. The business's fifty day moving average is GBX 228.65 and its 200 day moving average is GBX 239.53. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 43.13.

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 outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors 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.