Pets at Home Group (LON:PETS) Trading Down 12.2% on Analyst Downgrade

Key Points

• Pets at Home Group's stock price fell by 12.2% during mid-day trading, closing at GBX 200.60 ($2.73) after a decrease from GBX 228.40 ($3.11).
• Analysts remain cautiously optimistic, with two analysts rating the stock as a Buy and a consensus price target of GBX 273.33 despite recent price drops.
• The company has initiated a stock buyback program, which is often seen as a sign that management believes the shares are undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price traded down 12.2% 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 200.60 ($2.71). 10,348,098 shares traded hands during mid-day trading, an increase of 327% from the average session volume of 2,420,892 shares. The stock had previously closed at GBX 228.40 ($3.09).

Several other equities analysts have also weighed in on PETS. Shore Capital reiterated a "no recommendation" rating on shares of Pets at Home Group in a 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 for the company in a research report on Thursday. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Pets at Home Group has an average rating of "Moderate Buy" and a consensus target price of GBX 235.

Pets at Home Group Stock Up 2.7%

The stock's fifty day moving average is GBX 228.65 and its two-hundred day moving average is GBX 239.53. The company has a current ratio of 0.63, a quick ratio of 0.57 and a debt-to-equity ratio of 43.13. 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.

Pets at Home Group announced that its board has authorized a share buyback 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. Shares buyback programs are often a sign that the company's management believes its stock is 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.