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

Key Points

• Pets at Home Group shares dropped 16.7%, trading as low as GBX 175.50 ($2.39) after closing at GBX 228.40 ($3.11) the previous session.
• Various analysts are optimistic about the stock, with two firms rating it as a Buy while the average price target is set at GBX 273.33.
• The company has initiated a stock repurchase plan, indicating management believes the stock is undervalued.

Pets at Home Group Plc (LON:PETS - Get Free Report)'s share price dropped 16.7% 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).

Several other analysts also recently weighed in 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 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 note on Thursday. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price 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 company has a 50-day simple moving average of GBX 228.65 and a 200-day simple moving average of GBX 239.53. The company has a market cap of £890.14 million, a price-to-earnings ratio of 1,053.09, a PEG ratio of 2.66 and a beta of 0.69.

Pets at Home Group declared that its board has initiated a stock buyback program on Monday, June 9th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its stock is 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.