Zacks Investment Research upgraded shares of PetMed Express Inc. (NASDAQ:PETS) from a sell rating to a hold rating in a research note published on Monday.

According to Zacks, “PetMed exhibited a better-than-expected revenue performance in its second-quarter fiscal 2017, while earnings remained below the Zacks Consensus Estimate. We are impressed with the fact that, after a series of continued drag in new order sales, the last three quarters saw a turnaround in the number primarily on the back of more aggressive pricing. Also re-order sales have risen significantly in this quarter. Meanwhile, gross margin pressure continues. We are also concerned about the pressure on operating margin despite the company’s ongoing cost reduction initiatives. On the flip side, however, lesser advertising raises concerns. The company is presently trying to implement several strategies to revive its top line. These include focus on advertising efficiency to improve new order sales and shifting sales to higher margin items.”

Separately, Credit Suisse Group AG reiterated a sell rating and issued a $13.00 price objective on shares of PetMed Express in a research report on Tuesday, August 16th.

Shares of PetMed Express (NASDAQ:PETS) opened at 21.90 on Monday. PetMed Express has a 52 week low of $15.73 and a 52 week high of $22.25. The firm has a market cap of $443.54 million, a P/E ratio of 20.47 and a beta of 1.11. The stock has a 50 day moving average of $20.49 and a 200 day moving average of $19.83.

PetMed Express (NASDAQ:PETS) last issued its quarterly earnings data on Monday, October 24th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.26 by $0.02. PetMed Express had a net margin of 9.10% and a return on equity of 25.77%. The business earned $60.80 million during the quarter, compared to analyst estimates of $58.47 million. During the same quarter in the prior year, the firm posted $0.22 earnings per share. PetMed Express’s revenue for the quarter was up 7.2% compared to the same quarter last year. Equities analysts forecast that PetMed Express will post $1.09 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 18th. Stockholders of record on Monday, November 7th were paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 3.47%. The ex-dividend date of this dividend was Thursday, November 3rd. PetMed Express’s dividend payout ratio is currently 71.03%.

In other news, CEO Menderes Akdag sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, October 10th. The stock was sold at an average price of $21.00, for a total transaction of $210,000.00. Following the sale, the chief executive officer now owns 600,000 shares in the company, valued at approximately $12,600,000. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Bruce S. Rosenbloom sold 1,500 shares of the company’s stock in a transaction that occurred on Monday, October 10th. The stock was sold at an average price of $21.00, for a total value of $31,500.00. Following the sale, the insider now owns 41,767 shares in the company, valued at approximately $877,107. The disclosure for this sale can be found here. Insiders own 4.70% of the company’s stock.

Several large investors have recently made changes to their positions in the company. Emerald Acquisition Ltd. acquired a new stake in PetMed Express during the second quarter worth $377,000. Societe Generale acquired a new stake in PetMed Express during the second quarter worth $2,286,000. Cardinal Capital Management boosted its stake in PetMed Express by 5.4% in the second quarter. Cardinal Capital Management now owns 41,593 shares of the company’s stock worth $780,000 after buying an additional 2,145 shares during the period. First Midwest Bank Trust Division boosted its stake in PetMed Express by 46.0% in the second quarter. First Midwest Bank Trust Division now owns 41,432 shares of the company’s stock worth $777,000 after buying an additional 13,058 shares during the period. Finally, Bank of Montreal Can acquired a new stake in PetMed Express during the second quarter worth $143,000. Institutional investors own 75.57% of the company’s stock.

About PetMed Express

PetMed Express, Inc (PetMed Express), doing business as 1800PetMeds, is a pet pharmacy. The Company markets prescription and non-prescription pet medications, and other health products for dogs and cats, direct to the consumer. It offers a selection of products for dogs and cats. Its product line contains approximately 3,000 stock keeping units (SKUS) of pet medications, health products and supplies.

5 Day Chart for NASDAQ:PETS

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