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

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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. Petco Health and Wellness had a positive return on equity of 0.46% and a negative net margin of 0.04%.The company had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.47 billion. During the same quarter in the prior year, the business earned ($0.02) earnings per share. Petco Health and Wellness’s revenue for the quarter was down 3.1% compared to the same quarter last year. Petco Health and Wellness has set its FY 2025 guidance at EPS.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Wells Fargo & Company boosted their price objective on shares of Petco Health and Wellness from $3.50 to $4.00 and gave the company an “equal weight” rating in a research report on Friday, August 29th. Robert W. Baird boosted their price objective on Petco Health and Wellness from $3.50 to $4.00 and gave the company a “neutral” rating in a research note on Friday, August 29th. Evercore ISI raised their target price on shares of Petco Health and Wellness from $3.00 to $4.00 and gave the stock an “in-line” rating in a research note on Wednesday. Jefferies Financial Group lifted their price target on shares of 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 reissued a “sell (e+)” rating on shares of Petco Health and Wellness in a research note on Wednesday. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $3.96.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in WOOF. Financial Management Professionals Inc. bought a new stake in shares of Petco Health and Wellness in the third quarter worth about $26,000. Brookwood Investment Group LLC purchased a new position in Petco Health and Wellness during the 2nd quarter valued at approximately $28,000. Focus Partners Advisor Solutions LLC bought a new stake in Petco Health and Wellness in the 1st quarter worth approximately $31,000. Concurrent Investment Advisors LLC purchased a new stake in shares of Petco Health and Wellness during the 2nd quarter worth approximately $31,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Petco Health and Wellness by 747.9% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 11,090 shares of the company’s stock valued at $31,000 after acquiring an additional 9,782 shares during the last quarter.

Petco Health and Wellness Stock Up 14.5%

The business has a 50-day moving average price of $3.39 and a 200 day moving average price of $3.29. The company has a current ratio of 0.91, a quick ratio of 0.31 and a debt-to-equity ratio of 1.37. The stock has a market capitalization of $1.08 billion, a P/E ratio of -339.66 and a beta of 1.71.

About Petco Health and Wellness

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.