Why PetMed Express, Inc. (PETS) Is Getting Crushed -4.42% Today

PetMed Express, Inc. (NASDAQ:PETS) is among the top losers of the stock market today, sinking -4.42% or (-0.75 points) to $16.2 from its previous close of $16.95. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 178742 contracts so far this session. PETS shares had a relatively better volume day versus average trading capacity of 742.08 thousand shares, but with a 19.32 million float and a 7.35% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PETS stock indicates that the average analyst price target is $18.67 per share. This means the stock has a potential increase of 15.25% from where the PETS share price has been trading recently which is between $16.79 and $17.55. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $13.

The shorts are climbing into PetMed Express, Inc. (PETS) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in PETS shares. While short interest still represents only 50.22% of PETS’s float, the number of shares shorted have risen by 611721. The number of shares shorted advanced to 10315280 shares, up from 9703559 shares during the preceding fortnight. With average daily trading volumes at 755349 shares, days to cover decreased to about 17.58044 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Where PetMed Express, Inc.’s (NASDAQ:PETS) Earnings Growth Stands Against Its Industry” and dated July 18, 2019.

During the recent trading session for PetMed Express, Inc. (NASDAQ:PETS), the company witnessed their stock rise $1.3 over a week and tumble down $-0.23 from the price 20 days ago. When compared to their established 52-week high of $41.76, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/19/18. The recent low of $15 stood for a -61.21% since 12/07/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.52 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for PetMed Express, Inc., the two-week RSI stands at 47.4. This figure suggests that PETS stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current PETS readings is similarly very revealing as it has a stochastic reading of 72.03% at this stage. This figure means that PETS share price today is being oversold.

Technical chart claims that PetMed Express, Inc. (PETS) would settle between $17.4/share to $17.86/share level. However, if the stock price goes below the $16.64 mark, then the market for PetMed Express, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $16.34 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.8. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at CL King, assumed coverage of PETS assigning Neutral rating, according to their opinion released on June 15. Sidoti analysts bumped their rating on PetMed Express, Inc. (NASDAQ:PETS) stock from Neutral to Buy in a separate flash note issued to investors on August 24. Analysts at Northcoast released an upgrade from Neutral to Buy for the stock, in a research note that dated back to July 24.

PETS equity has an average rating of 3, with the figure leaning towards a bullish end. 3 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 1 analysts rated PetMed Express, Inc. (NASDAQ:PETS) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, PETS stock price is currently trading at 9.97X forward 12-month Consensus EPS estimates, and its P/S ratio is 2.87 while for the average stock in the same group, the multiple is 1.33. PetMed Express, Inc. current P/E ratio of 27.47 means it is trading at a premium against its industry’s 21.54. In the past 5 years, this ratio for the stock has been fluctuating between 14.96 and 19.06.