May 29, 2023 – UBS Group AG, one of the world’s largest investment banking firms, has recently disclosed its holdings in PetMed Express, Inc. (NASDAQ:PETS), a pet medication and supplies provider. According to the latest filing with the Securities & Exchange Commission (SEC), UBS Group AG lifted its position by an astonishing 779.2% during the fourth quarter.
The Swiss multinational bank now owns a total of 267,173 shares of PETS after purchasing an additional 236,786 shares over that period. At the end of the most recent quarter, it was revealed that UBS Group AG’s stake is worth approximately $4,729,000, which accounts for about 1.27% of PetMed Express’ total value.
This is a significant move for UBS Group AG considering PetMed Express’ current state in the market. The Florida-based company has struggled to keep up with its competitors amidst increasing competition in the pet medication industry. Shares of PETS have declined over time and only opened at $14.87 on Monday with a market capitalization of $314.80 million.
However, despite these challenges, PetMed Express is still committed to providing quality prescription and non-prescription pet medications and supplies for dogs and cats alike. Its product lines include flea and tick control products, bone and joint care products, vitamins, hygiene products, treats & nutritional supplements under many well-known brands.
It’s important to note that companies like UBS Group AG do not take such significant positions unless they believe there is potential growth opportunity within the organization or points towards improving realizations on their investments. With this view more active investors might see opportunity lurking in this stock since savvy investors seldom neglect where large companies are positioning themselves amongst businesses they hold a niche understanding about.
In conclusion; while the future remains uncertain to all those keeping tabs on PETS stock right now will be looking for clarity emerging from the financials of the next quarter and whether other institutional investors are following UBS’ actions. Regardless, developing a strategic vision and adapting to change should be very top of mind in the boardrooms of both companies knowing that the no one path ahead is the same.
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PetMed Express Misses Analysts’ Consensus Estimates for Q1 2023
PetMed Express, Inc. is a company providing prescription and non-prescription pet medications, health products, and supplies for dogs and cats. Although the company has seen increasing investments from various hedge funds recently, PetMed Express missed analysts’ consensus estimates of $0.14 by reporting ($0.25) earnings per share (EPS) for the quarter. The revenue earned by the firm during this quarter was $62.41 million, compared to the consensus estimate of $69.93 million.
The institutional investors own 77.74% of PetMed Express’s stock, with Nierenberg Investment Management Company Inc., Commonwealth Equity Services LLC, Mutual of America Capital Management LLC, Captrust Financial Advisors, and Advisors Asset Management Inc. collectively adding or reducing stakes in the stock.
Several reports have been released on PetMed Express recently by research analysts. StockNews.com initiated coverage on shares of PetMed Express in May 2023 while Lake Street Capital began coverage on the company in May 2023 as well with a “buy” rating and price target of $20 on the stock. However, Morgan Stanley lowered their target price on PetMed Express from $18 to $17 and set an “underweight” rating for the company in March 2023.
In addition to its pharmaceutical offerings, PetMed Express also offers flea controls products, bone and joint care products, hygiene products, vitamins as well as treats and nutritional supplements for furry friends.
Although recently announced quarterly dividends indicated a dividend yield of 8.07%, bigger concern arises over financial dampeners caused due to missed EPS percentage forecasted during Q1 2023 held on Monday, May 22nd which appears to have created both opportunities through investments while leaving investors wary at the same time about future performance forecasts expected later in current fiscal year end predictions where market fluctuations may see either a lifting or drop within share values altogether for companies operating like Petmed express.
