Petco Health and Wellness (NASDAQ:WOOF) Sets New 52-Week Low - Time to Sell?

Key Points

• Petco shares hit a new 52-week low of $2.24 and were trading near $2.2550, below both their 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans cautious: the consensus rating is “Hold” with a $3.42 price target, while recent firms have lowered targets or assigned “underperform” ratings.
• Petco beat quarterly EPS estimates, reporting $0.13 versus a forecast of $0.07, but profitability remained weak with a 0.51% net margin; insiders have also sold 450,000 shares over the past 90 days.

Shares of Petco Health and Wellness Company, Inc. (NASDAQ:WOOF - Get Free Report) reached a new 52-week low during trading on Tuesday. The stock traded as low as $2.24 and last traded at $2.2550, with a volume of 788674 shares changing hands. The stock had previously closed at $2.27.

Analyst Upgrades and Downgrades

WOOF has been the subject of a number of recent analyst reports. Citigroup cut their price target on shares of Petco Health and Wellness from $4.00 to $3.25 and set a "neutral" rating for the company in a report on Thursday, June 4th. Zacks Research upgraded shares of Petco Health and Wellness from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 4th. Weiss Ratings upgraded Petco Health and Wellness from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, September 8th. Robert W. Baird raised their target price on Petco Health and Wellness from $3.00 to $3.25 and gave the company a "neutral" rating in a report on Thursday, September 3rd. Finally, BNP Paribas Exane decreased their price target on Petco Health and Wellness from $2.34 to $2.11 and set an "underperform" rating on the stock in a research note on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $3.42.

Petco Health and Wellness Trading Down 0.2%

The company has a debt-to-equity ratio of 1.21, a quick ratio of 0.39 and a current ratio of 0.90. The firm has a market cap of $734.34 million, a price-to-earnings ratio of 22.65, a PEG ratio of 2.06 and a beta of 1.53. The business has a fifty day simple moving average of $2.64 and a 200-day simple moving average of $2.73.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The company reported $0.13 EPS for the quarter, beating analysts' consensus estimates of $0.07 by $0.06. Petco Health and Wellness had a return on equity of 3.44% and a net margin of 0.51%.The firm had revenue of $1.49 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same period last year, the firm posted $0.05 earnings per share. As a group, equities analysts forecast that Petco Health and Wellness Company, Inc. will post 0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Petco Health and Wellness news, insider Holly May sold 200,000 shares of the business's stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $2.54, for a total transaction of $508,000.00. Following the sale, the insider directly owned 1,327,867 shares of the company's stock, valued at $3,372,782.18. The trade was a 13.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last 90 days, insiders have sold 450,000 shares of company stock worth $1,145,500. 6.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Petco Health and Wellness

A number of hedge funds have recently modified their holdings of WOOF. HB Wealth Management LLC acquired a new stake in Petco Health and Wellness in the first quarter valued at $34,000. International Assets Investment Management LLC lifted its holdings in Petco Health and Wellness by 63.9% during the 1st quarter. International Assets Investment Management LLC now owns 12,825 shares of the company's stock worth $35,000 after buying an additional 5,000 shares during the period. R Squared Ltd bought a new stake in shares of Petco Health and Wellness in the 1st quarter valued at about $36,000. AXQ Capital LP acquired a new stake in shares of Petco Health and Wellness in the fourth quarter valued at about $47,000. Finally, Amundi acquired a new stake in shares of Petco Health and Wellness in the first quarter valued at about $54,000.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc is a pet-focused retailer and services provider operating primarily in the United States and Puerto Rico. The company serves pet owners through a network of stores and digital channels, offering products and services for dogs, cats, small animals, birds, fish and reptiles.

Petco sells pet food, treats, supplies, toys, bedding, habitats and other everyday care products, including merchandise under its own brands such as WholeHearted, Reddy and EveryYay.

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