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

Key Points

• Pets at Home Group shares fell by 16.7%, trading as low as GBX 175.50 ($2.39) in a significant drop from the previous closing price of GBX 228.40 ($3.11).
• Analysts have mixed views on the stock, with a consensus rating of "Moderate Buy" and a price target averaging GBX 273.33, indicating potential upside despite recent declines.
• The company has also initiated a stock repurchase plan, suggesting management's belief that the shares are undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price fell 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). 9,942,952 shares were traded during 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).

Several other brokerages have also commented on PETS. Shore Capital restated a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating for the company in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of GBX 235.

Pets at Home Group Price Performance

The business has a 50-day simple moving average of GBX 228.65 and a 200 day simple moving average of GBX 239.53. The firm has a market cap of £890.14 million, a P/E ratio of 1,053.09, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69. The company has a debt-to-equity ratio of 43.13, a quick ratio of 0.57 and a current ratio of 0.63.

Pets at Home Group declared that its board has approved a share repurchase plan on Monday, June 9th that allows the company to buyback 0 shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is 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.