Pets at Home Group (LON:PETS) Shares Down 16.7% Following Analyst Downgrade

Key Points

• Pets at Home Group shares dropped by 16.7% during mid-day trading, hitting a low of GBX 175.50 before recovering slightly to GBX 190.20.
• Analysts have mixed views; Deutsche Bank reduced its price target from GBX 285 to GBX 275 while Canaccord Genuity maintained a buy rating with a target of GBX 300.
• The company has initiated a share repurchase program, indicating management's belief that the stock is undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price was down 16.7% 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 ($2.37) and last traded at GBX 190.20 ($2.57). Approximately 9,942,952 shares changed hands during mid-day trading, an increase of 311% from the average daily volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.09).

A number of other research firms have also issued reports on PETS. Deutsche Bank Aktiengesellschaft lowered their target price on Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating on the stock in a report on Thursday. Shore Capital reaffirmed 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 issued a Hold rating to the company. 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 Trading Up 2.7%

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 cap of £890.14 million, a price-to-earnings ratio of 1,053.09, a price-to-earnings-growth ratio of 2.66 and a beta of 0.69. The business has a 50 day simple moving average of GBX 228.65 and a 200 day simple moving average of GBX 239.53.

Pets at Home Group declared that its board has approved a share repurchase 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. Shares repurchase programs are usually an indication that the company's board believes its shares are undervalued.

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.