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.

Shares of Pets at Home Group Plc (LON:PETS - Get Free Report) traded down 12.2% during mid-day trading on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 275 to GBX 215. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock. Pets at Home Group traded as low as GBX 175.50 ($2.36) and last traded at GBX 200.60 ($2.70). 10,348,098 shares were traded during trading, an increase of 327% from the average session volume of 2,420,892 shares. The stock had previously closed at GBX 228.40 ($3.08).

A number of other brokerages also recently issued reports on PETS. Canaccord Genuity Group reaffirmed a "buy" rating and set a GBX 300 price target on shares of Pets at Home Group in a research report on Thursday, May 29th. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Two equities research 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 has an average rating of "Moderate Buy" and an average target price of GBX 253.33.

Pets at Home Group Stock Performance

The company has a debt-to-equity ratio of 43.13, a current ratio of 0.63 and a quick ratio of 0.57. The company has a market capitalization of £866.85 million, a PE ratio of 1,025.53, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69. The firm's fifty day simple moving average is GBX 229.57 and its 200 day simple moving average is GBX 239.76.

Pets at Home Group declared that its Board of Directors has authorized a share repurchase program on Monday, June 9th that permits the company to repurchase 0 shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board 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.