Pets at Home Group (LON:PETS) Stock Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• Pets at Home Group shares recently fell below their 50-day moving average, trading at GBX 244.20 ($3.26), with a market capitalization of £1.12 billion.
• Analysts have varied opinions on the stock, with Canaccord Genuity setting a price target of GBX 300 ($4.01) while Berenberg Bank lowered its target to GBX 245 ($3.27).
• The company announced a share buyback plan, suggesting that executives believe its stock is currently undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report) passed below its 50 day moving average during trading on Monday . The stock has a 50 day moving average of GBX 256.08 ($3.38) and traded as low as GBX 243 ($3.21). Pets at Home Group shares last traded at GBX 244.20 ($3.23), with a volume of 565,476 shares changing hands.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Canaccord Genuity Group reaffirmed a "buy" rating and set a GBX 300 ($3.96) target price on shares of Pets at Home Group in a research report on Thursday, May 29th. Deutsche Bank Aktiengesellschaft lowered their target price on Pets at Home Group from GBX 285 ($3.76) to GBX 275 ($3.63) and set a "buy" rating for the company in a research report on Friday. Finally, Shore Capital reaffirmed a "no recommendation" rating on shares of Pets at Home Group in a research report on Thursday. One investment analyst has rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of GBX 292.50 ($3.86).

Pets at Home Group Trading Down 3.8%

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 firm has a 50 day moving average of GBX 254.91 and a 200 day moving average of GBX 238.83. The firm has a market cap of £1.00 billion, a PE ratio of 13.37, a P/E/G ratio of 2.66 and a beta of 0.69.

Pets at Home Group (LON:PETS - Get Free Report) last issued its earnings results on Wednesday, May 28th. The company reported GBX 21 ($0.28) earnings per share (EPS) for the quarter. Pets at Home Group had a net margin of 5.36% and a return on equity of 8.05%. Equities analysts anticipate that Pets at Home Group Plc will post 22.67844 earnings per share for the current year.

Pets at Home Group announced that its Board of Directors has initiated a share buyback program on Monday, June 9th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Lyssa McGowan sold 80,878 shares of the stock in a transaction on Monday, June 2nd. The stock was sold at an average price of GBX 266 ($3.51), for a total value of £215,135.48 ($284,194.82). Also, insider Michael Iddon sold 42,879 shares of the stock in a transaction on Monday, June 2nd. The shares were sold at an average price of GBX 266 ($3.51), for a total value of £114,058.14 ($150,671.25). Company insiders own 1.80% of the company's stock.

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.