Petco Health and Wellness (NASDAQ:WOOF) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• Petco shares rose 5% and traded above their 200-day moving average of $2.67, reaching $2.77 before last trading at $2.74 on substantial volume.
• Analyst sentiment remains mixed, with ratings ranging from Strong Buy to Sell; the overall consensus is Hold, with an average price target of $3.42.
• Petco exceeded quarterly earnings expectations, reporting $0.13 in EPS versus the $0.07 consensus estimate, while revenue matched forecasts at $1.49 billion. Profitability remained modest, with a 0.51% net margin and 3.44% return on equity.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $2.67 and traded as high as $2.77. Petco Health and Wellness shares last traded at $2.74, with a volume of 4,726,853 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on WOOF. BNP Paribas Exane decreased their target price on Petco Health and Wellness from $2.34 to $2.11 and set an "underperform" rating on the stock in a research report on Thursday, September 3rd. Zacks Research upgraded Petco Health and Wellness from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 4th. Weiss Ratings raised Petco Health and Wellness from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, October 22nd. Wall Street Zen upgraded Petco Health and Wellness from a "hold" rating to a "buy" rating in a report on Sunday, September 13th. Finally, UBS Group decreased their price objective on Petco Health and Wellness from $4.00 to $3.50 and set a "neutral" rating on the stock in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $3.42.

Petco Health and Wellness Trading Up 5.0%

The company has a current ratio of 0.90, a quick ratio of 0.39 and a debt-to-equity ratio of 1.21. The company has a fifty day simple moving average of $2.44 and a 200-day simple moving average of $2.67. The company has a market capitalization of $888.34 million, a PE ratio of 27.40, a PEG ratio of 2.28 and a beta of 1.59.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.07 by $0.06. Petco Health and Wellness had a net margin of 0.51% and a return on equity of 3.44%. The business had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same quarter last year, the firm earned $0.05 EPS. Analysts predict that Petco Health and Wellness Company, Inc. will post 0.10 EPS for the current year.

Hedge Funds Weigh In On Petco Health and Wellness

A number of hedge funds have recently modified their holdings of the business. HB Wealth Management LLC acquired a new position in Petco Health and Wellness during the 1st quarter worth approximately $34,000. International Assets Investment Management LLC raised its holdings in shares of Petco Health and Wellness by 63.9% in the 1st quarter. International Assets Investment Management LLC now owns 12,825 shares of the company's stock valued at $35,000 after purchasing an additional 5,000 shares in the last quarter. R Squared Ltd purchased a new stake in shares of Petco Health and Wellness during the 1st quarter worth $36,000. Amundi purchased a new stake in shares of Petco Health and Wellness during the 1st quarter worth $54,000. Finally, Rockefeller Capital Management L.P. lifted its position in shares of Petco Health and Wellness by 14.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 23,500 shares of the company's stock worth $66,000 after purchasing an additional 2,988 shares during the last quarter.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc is a U.S.-based pet health and wellness retailer operating under the Petco brand. The company serves pet owners through a combination of brick-and-mortar stores, digital commerce channels and service locations, offering products and services for dogs, cats, fish, birds, reptiles and other companion animals.

Petco's merchandise includes pet food, treats, toys, bedding, habitats, grooming supplies and other everyday care products. Its services include veterinary care, grooming, training, adoption support and other wellness offerings.

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