Petco Health and Wellness (NASDAQ:WOOF) Stock Jumps 8.4% - Should You Buy?

Key Points

• Petco shares jumped 8.4% to approximately $2.51 in heavy trading, with volume about 36% above its average daily level.
• Analyst sentiment remains mixed but leans neutral: the stock has a consensus “Hold” rating and an average price target of $3.42, despite recent target changes ranging from $2.11 to $3.50.
• Petco exceeded quarterly earnings expectations, reporting $0.13 per share versus the $0.07 consensus estimate, while revenue matched forecasts at $1.49 billion.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF - Get Free Report) shares rose 8.4% during trading on Thursday. The company traded as high as $2.51 and last traded at $2.5050. 3,052,975 shares were traded during mid-day trading, an increase of 36% from the average daily volume of 2,243,645 shares. The stock had previously closed at $2.31.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. UBS Group decreased their target price on Petco Health and Wellness from $4.00 to $3.50 and set a "neutral" rating for the company in a research report on Thursday, September 3rd. Weiss Ratings upgraded shares of Petco Health and Wellness from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, September 8th. Robert W. Baird lifted their price target 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. Wall Street Zen upgraded Petco Health and Wellness from a "hold" rating to a "buy" rating in a research report on Sunday, September 13th. Finally, BNP Paribas Exane cut their price objective on shares of 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 investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $3.42.

Petco Health and Wellness Stock Up 9.5%

The company has a market capitalization of $820.25 million, a price-to-earnings ratio of 25.30, a price-to-earnings-growth ratio of 2.11 and a beta of 1.59. The firm's 50-day simple moving average is $2.48 and its 200-day simple moving average is $2.65. The company has a debt-to-equity ratio of 1.21, a quick ratio of 0.39 and a current ratio of 0.90.

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The company reported $0.13 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $1.49 billion. During the same quarter in the prior year, the firm earned $0.05 EPS. Sell-side analysts forecast that Petco Health and Wellness Company, Inc. will post 0.10 earnings per share for the current year.

Institutional Investors Weigh In On Petco Health and Wellness

Large investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC acquired a new stake in shares of Petco Health and Wellness during the 1st quarter worth approximately $1,455,000. Hillsdale Investment Management Inc. bought a new stake in Petco Health and Wellness during the first quarter worth $3,883,000. Dimensional Fund Advisors LP lifted its position in shares of Petco Health and Wellness by 6.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 10,111,061 shares of the company's stock worth $28,107,000 after buying an additional 655,567 shares in the last quarter. Squarepoint Ops LLC purchased a new position in Petco Health and Wellness in the second quarter worth $723,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in Petco Health and Wellness in the first quarter valued at about $527,000.

Petco Health and Wellness Company Profile

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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