Pets at Home Group (LON:PETS) Trading 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) shares fell 16.7% during 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). 9,942,952 shares were traded during mid-day trading, an increase of 311% from the average session volume of 2,418,653 shares. The stock had previously closed at GBX 228.40 ($3.09).

Several other research firms have also commented on PETS. Shore Capital reissued a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft dropped their price objective on Pets at Home Group from GBX 275 to GBX 215 and set a "buy" rating on the stock in a report on Thursday. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Pets at Home Group has an average rating of "Moderate Buy" and an average 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 stock 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's fifty day simple moving average is GBX 228.65 and its 200 day simple moving average is GBX 239.53.

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