Pets at Home Group (LON:PETS) Trading Down 20.1% on Analyst Downgrade

Key Points

• Pets at Home Group shares fell by 20.1% during trading, closing at GBX 182.40, following a previous close of GBX 228.40.
• Analysts have mixed views, with two issuing a 'Buy' rating and one a 'Hold,' while the average consensus price target is GBX 273.33.
• The company has initiated a stock buyback program, suggesting management believes the stock is undervalued amidst current trading difficulties.

Pets at Home Group Plc (LON:PETS - Get Free Report) shares dropped 20.1% 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 182.40 ($2.47). Approximately 6,476,173 shares were traded during mid-day trading, an increase of 170% from the average daily volume of 2,399,500 shares. The stock had previously closed at GBX 228.40 ($3.09).

A number of other analysts have also recently weighed in on PETS. Deutsche Bank Aktiengesellschaft dropped their target price on shares of 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 reissued a "no recommendation" rating on shares of Pets at Home Group in a report on Thursday, July 31st. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of GBX 235.

Pets at Home Group Stock Up 2.7%

The stock's 50-day moving average is GBX 228.65 and its 200-day moving average is GBX 239.53. The stock has a market cap of £890.14 million, a P/E ratio of 1,053.09, a price-to-earnings-growth 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 declared that its Board of Directors has initiated a share buyback plan 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. Stock repurchase plans are often a sign that the company's leadership 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.