Petco Health and Wellness (NASDAQ:WOOF) Lowered to Hold Rating by Wall Street Zen

Wall Street Zen downgraded shares of Petco Health and Wellness (NASDAQ:WOOF) from a buy rating to a hold rating in a report published on Saturday morning,Wall Street Zen reports.

WOOF has been the subject of several other research reports. BNP Paribas Exane cut their price target on Petco Health and Wellness from $2.34 to $2.11 and set an “underperform” rating for the company in a research note on Thursday. Citigroup lowered their price objective on shares of Petco Health and Wellness from $4.00 to $3.25 and set a “neutral” rating on the stock in a research note on Thursday, June 4th. Weiss Ratings restated a “sell (d)” rating on shares of Petco Health and Wellness in a report on Thursday, June 11th. UBS Group dropped their target price on shares of Petco Health and Wellness from $4.00 to $3.50 and set a “neutral” rating for the company in a report on Thursday. Finally, Robert W. Baird lifted their target price on shares of Petco Health and Wellness from $3.00 to $3.25 and gave the stock a “neutral” rating in a research report on Thursday. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $3.42.

Petco Health and Wellness Stock Performance

NASDAQ WOOF opened at $2.70 on Friday. The business has a 50 day moving average price of $2.71 and a 200 day moving average price of $2.74. The company has a market capitalization of $873.06 million, a P/E ratio of 27.00, a PEG ratio of 3.13 and a beta of 1.53. Petco Health and Wellness has a 1-year low of $2.24 and a 1-year high of $3.96. The company has a debt-to-equity ratio of 1.21, a current ratio of 0.90 and a quick ratio of 0.29.

Petco Health and Wellness (NASDAQ:WOOF) last posted its earnings results on Wednesday, September 2nd. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.06. The company had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.49 billion. Petco Health and Wellness had a return on equity of 3.44% and a net margin of 0.51%.During the same period in the previous year, the business earned $0.05 earnings per share. Sell-side analysts expect that Petco Health and Wellness will post 0.1 EPS for the current fiscal year.

Insider Activity

In related news, insider Holly May sold 200,000 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $2.54, for a total transaction of $508,000.00. Following the sale, the insider owned 1,327,867 shares of the company’s stock, valued at $3,372,782.18. This trade represents a 13.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 450,000 shares of company stock valued at $1,145,500 in the last quarter. 6.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WOOF. Nuveen LLC grew its holdings in shares of Petco Health and Wellness by 81.9% during the fourth quarter. Nuveen LLC now owns 3,998,724 shares of the company’s stock worth $11,236,000 after buying an additional 1,800,860 shares in the last quarter. Holocene Advisors LP boosted its position in shares of Petco Health and Wellness by 42.0% in the third quarter. Holocene Advisors LP now owns 6,091,656 shares of the company’s stock worth $23,575,000 after buying an additional 1,800,583 shares during the period. Hillsdale Investment Management Inc. acquired a new stake in shares of Petco Health and Wellness in the first quarter valued at about $3,883,000. Goldman Sachs Group Inc. grew its stake in shares of Petco Health and Wellness by 60.2% in the first quarter. Goldman Sachs Group Inc. now owns 3,637,695 shares of the company’s stock valued at $11,095,000 after buying an additional 1,367,299 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. purchased a new stake in shares of Petco Health and Wellness during the 4th quarter valued at about $2,692,000.

Key Headlines Impacting Petco Health and Wellness

Here are the key news stories impacting Petco Health and Wellness this week:

• Positive Sentiment: Petco reported fiscal Q2 earnings per share of $0.13, above the $0.07 consensus estimate and up from $0.05 a year earlier. Adjusted earnings were reported at $0.16 by Zacks, also exceeding expectations. Revenue was approximately $1.49 billion, in line with forecasts. Petco Q2 EPS beat
• Positive Sentiment: Net income rose to $38.7 million, while operating cash flow nearly doubled. Management attributed part of the improvement to stronger consumables and services performance, omnichannel initiatives, and a one-time tariff refund. Petco turnaround gains
• Positive Sentiment: Petco reaffirmed its flat-to-1.5% full-year sales outlook and forecast fiscal 2026 adjusted EBITDA of $415 million to $430 million, supporting the view that cost controls and operational improvements can drive earnings even without significant sales growth. Petco fiscal 2026 outlook
• Neutral Sentiment: Analyst opinions remain divided. RBC Capital maintained a Buy rating, while Morgan Stanley kept a Hold rating. Robert W. Baird raised its price target to $3.25 but retained a Neutral rating. RBC Buy rating
• Negative Sentiment: BNP Paribas Exane cut its price target to $2.11 and assigned an Underperform rating. UBS lowered its target to $3.50 and retained a Neutral rating, underscoring concerns about limited revenue momentum and execution risk. Analyst caution after Petco earnings

Petco Health and Wellness Company Profile

Petco Health and Wellness Company, Inc (NASDAQ: WOOF) is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets.

In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care.