Petco Health and Wellness (NASDAQ:WOOF) Shares Gap Up on Strong Earnings

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $2.97, but opened at $3.56. Petco Health and Wellness shares last traded at $3.3750, with a volume of 5,046,742 shares.

The company reported $0.03 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.02. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.47 billion. Petco Health and Wellness had a negative net margin of 0.47% and a negative return on equity of 1.71%. The company’s quarterly revenue was down 3.1% on a year-over-year basis. During the same quarter last year, the firm posted ($0.02) EPS. Petco Health and Wellness has set its FY 2025 guidance at EPS.

Analysts Set New Price Targets

WOOF has been the subject of several research reports. UBS Group raised their price objective on shares of Petco Health and Wellness from $3.25 to $3.70 and gave the stock a “neutral” rating in a research report on Friday, August 29th. Guggenheim reiterated a “neutral” rating on shares of Petco Health and Wellness in a research note on Tuesday, September 2nd. Wall Street Zen upgraded Petco Health and Wellness from a “hold” rating to a “buy” rating in a research note on Saturday, October 4th. Jefferies Financial Group upped their price objective on Petco Health and Wellness from $4.05 to $4.15 and gave the company a “hold” rating in a report on Friday, August 29th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Petco Health and Wellness in a research report on Tuesday, October 14th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $3.96.

Hedge Funds Weigh In On Petco Health and Wellness

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Greenfield Seitz Capital Management LLC boosted its holdings in Petco Health and Wellness by 64.4% in the third quarter. Greenfield Seitz Capital Management LLC now owns 60,000 shares of the company’s stock valued at $232,000 after acquiring an additional 23,500 shares during the last quarter. Kestra Private Wealth Services LLC bought a new position in shares of Petco Health and Wellness during the 3rd quarter worth approximately $47,000. PharVision Advisers LLC acquired a new stake in shares of Petco Health and Wellness during the 3rd quarter worth approximately $201,000. XTX Topco Ltd increased its stake in shares of Petco Health and Wellness by 7.3% in the 3rd quarter. XTX Topco Ltd now owns 142,959 shares of the company’s stock valued at $553,000 after acquiring an additional 9,681 shares in the last quarter. Finally, Sherbrooke Park Advisers LLC acquired a new position in shares of Petco Health and Wellness during the 3rd quarter valued at $76,000.

Petco Health and Wellness Stock Performance

The company has a quick ratio of 0.31, a current ratio of 0.89 and a debt-to-equity ratio of 1.39. The firm has a market capitalization of $1.12 billion, a P/E ratio of -35.34 and a beta of 1.71. The company’s 50 day moving average is $3.39 and its 200-day moving average is $3.29.

Petco Health and Wellness Company Profile

Petco Health and Wellness Company, Inc, operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics.