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

Key Points

• Pets at Home Group shares dropped 16.7%, trading as low as GBX 175.50, with a significant increase in trading volume at nearly 10 million shares exchanged.
• Analysts have mixed views on the stock; Deutsche Bank lowered its target price to GBX 275, while Canaccord Genuity maintains a buy rating with a target of GBX 300.
• The company has announced a share buyback program, indicating that it views its shares as undervalued amid a debt-to-equity ratio of 43.13 and a market cap of £883.93 million.

Shares of Pets at Home Group Plc (LON:PETS - Get Free Report) traded down 16.7% during trading on Friday 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 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).

A number of other brokerages have also recently commented on PETS. Shore Capital restated a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft lowered their price target 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 issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of GBX 235.

Pets at Home Group Trading Up 2.7%

The stock has a 50 day simple moving average of GBX 228.65 and a 200-day simple moving average of GBX 239.53. The firm has a market capitalization of £890.14 million, a P/E ratio of 1,053.09, a P/E/G ratio of 2.66 and a beta of 0.69. The company has a current ratio of 0.63, a quick ratio of 0.57 and a debt-to-equity ratio of 43.13.

Pets at Home Group announced that its board has initiated a share buyback plan on Monday, June 9th that permits the company to buyback 0 shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Stock buyback plans are often 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.