Pets at Home Group (LON:PETS) Stock Price Down 16.7% on Analyst Downgrade

Key Points

• Pets at Home Group shares dropped by 16.7% during trading, closing at GBX 190.20 ($2.59) from a previous close of GBX 228.40 ($3.11), with trading volume significantly up by 311%.
• Analysts have set a price target for Pets at Home Group between GBX 275 and GBX 300, with a consensus rating of "Moderate Buy".
• The company has authorized a share repurchase program, which may indicate management's belief that the stock is currently undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price was down 16.7% during 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 190.20 ($2.56). 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 ($3.08).

Several other research firms also recently weighed in on PETS. Shore Capital reiterated a "no recommendation" rating on shares of Pets at Home Group in a research note on Thursday, July 31st. Canaccord Genuity Group restated a "buy" rating and issued a GBX 300 target price on shares of Pets at Home Group in a research note on Thursday, May 29th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of GBX 253.33.

Pets at Home Group Trading Down 0.1%

The company has a 50 day moving average of GBX 229.57 and a two-hundred day moving average of 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 £866.85 million, a PE ratio of 1,025.53, a P/E/G ratio of 2.66 and a beta of 0.69.

Pets at Home Group announced that its board has authorized a stock buyback plan 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. Stock buyback plans are generally 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.