Pets at Home Group (LON:PETS) Trading Down 14.6% After Analyst Downgrade

Key Points

• Pets at Home Group's share price dropped 14.6%, trading as low as GBX 175.50 during mid-day trading on Thursday, with a significant increase in trading volume.
• Analyst ratings for the stock include a "buy" from Canaccord Genuity with a target price of GBX 300 and a downgraded target from Deutsche Bank to GBX 275, signaling mixed investor sentiment.
• The company announced a share repurchase plan, indicating management believes the stock is undervalued, despite having a high P/E ratio of 1,035.64.

Pets at Home Group Plc (LON:PETS - Get Free Report) traded down 14.6% 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 195 ($2.63). 11,650,430 shares were traded during trading, an increase of 380% from the average session volume of 2,428,087 shares. The stock had previously closed at GBX 228.40 ($3.08).

Several other equities research analysts also recently commented 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 reduced their price objective on 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 equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of GBX 235.

Pets at Home Group Price Performance

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 firm has a market capitalization 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 50-day moving average price of GBX 229.57 and a 200-day moving average price of GBX 239.79.

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