Pets at Home Group (LON:PETS) Shares Down 14.1% Following Analyst Downgrade

Key Points

• Pets at Home Group's stock dropped 14.1% during mid-day trading, reaching a low of GBX 175.50 before recovering slightly to GBX 196.10.
• Despite the recent decline, analysts maintain a "Moderate Buy" average rating, with a price target around GBX 273.33, reflecting some confidence in the company's recovery.
• The board approved a share repurchase program, indicating a belief in the company's undervaluation, though current financial ratios suggest potential liquidity concerns.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price was down 14.1% 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 ($2.36) and last traded at GBX 196.10 ($2.64). Approximately 11,764,960 shares were traded during mid-day trading, an increase of 384% from the average daily volume of 2,428,719 shares. The stock had previously closed at GBX 228.40 ($3.08).

PETS has been the subject of a number of other reports. Deutsche Bank Aktiengesellschaft cut their price objective on Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating for the company in a report on Thursday. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of GBX 235.

Pets at Home Group Stock Up 2.7%

The firm's 50-day simple moving average is GBX 229.57 and its 200 day simple moving average is GBX 239.79. The company has a debt-to-equity ratio of 43.13, a quick ratio of 0.57 and a current ratio of 0.63. The stock has a market capitalization of £890.14 million, a P/E ratio of 1,053.09, a PEG ratio of 2.66 and a beta of 0.69.

Pets at Home Group announced that its board has initiated a stock buyback program on Monday, June 9th that permits the company to buyback 0 outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Shares buyback programs are usually 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.