On November 21, Oppenheimer analyst Jason Helfstein initiated coverage of Wag! Group Co. (NASDAQ:PET) with an Outperform rating and a $5 price target. The analyst believes the company is well positioned to grow as pet services shift online. He added that the stock is depressed on lower investor appetite for small-cap companies which are not yet cash flow positive.
According to Insider Monkey’s third quarter database, 2 hedge funds were bullish on Wag! Group Co. (NASDAQ:PET), with combined stakes worth $1.10 million.
In addition to Chewy, Inc. (NYSE:CHWY), IDEXX Laboratories, Inc. (NASDAQ:IDXX), and Zoetis Inc. (NYSE:ZTS), Wag! Group Co. (NASDAQ:PET) is one of the best pet stocks to monitor.
10. Trupanion, Inc. (NASDAQ:TRUP)
Number of Hedge Fund Holders: 11
Trupanion, Inc. (NASDAQ:TRUP) is a Washington-based provider of medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Puerto Rico, and Australia. The company serves pet owners and veterinarians. Trupanion, Inc. (NASDAQ:TRUP) is one of the best pet stocks to monitor. The Q3 2022 revenue of $233.76 million increased 28.7% year-over-year and beat market estimates by $3.65 million. Subscription enrolled pets were 808,077 on September 30, 2022, an increase of 19% over the third quarter of 2021.
On November 4, Lake Street analyst Mark Argento maintained a Buy rating on Trupanion, Inc. (NASDAQ:TRUP) but lowered the price target on the shares to $67 from $112. While noting that Trupanion, Inc. (NASDAQ:TRUP) "posted another quarter of strong revenue growth," the analyst thinks it may take "a few quarters" for margins to normalize. He would use weakness as a buying opportunity, citing Trupanion, Inc. (NASDAQ:TRUP)’s "defensible, market-leading, and mass-market inflecting model".
According to Insider Monkey’s data, 11 hedge funds were bullish on Trupanion, Inc. (NASDAQ:TRUP) at the end of September 2022, compared to 14 in the prior quarter. Nine Ten Partners is the biggest position holder in the company, with 3.6 million shares worth $216.2 million.
Here is what Saga Partners has to say about Trupanion, Inc.(NYSE:TRUP) in its Q2 2022 investor letter:
“The Portfolio first bought Trupanion during Q3’18. Trupanion provides pet insurance to help owners budget for vet expenses if their pet needs care. While pet insurance has historically been a bad product with confusing, if not misleading, coverage that left pet owners and veterinarians distrustful of pet insurance, Trupanion simplified the product by providing comprehensive coverage and increased transparency to help customers and vets understand the value proposition.
9. BARK, Inc. (NYSE:BARK)
Number of Hedge Fund Holders: 13
BARK, Inc. (NYSE:BARK) is a New York-based dog-centric company, providing products, services, and content for dogs. It operates through two segments – Direct to Consumer and Commerce. The company serves dogs through monthly subscription services. BARK, Inc. (NYSE:BARK) is one of the best pet stocks to buy now. The Q3 2022 revenue of $143.8 million climbed 19.6% year-over-year and outperformed Wall Street estimates by $8.7 million. The average order value rose by $2.45 to $32.18, up 8% compared to the same period last year.
On November 10, Canaccord analyst Maria Ripps reiterated a Buy recommendation on BARK, Inc. (NYSE:BARK) but trimmed the price target on the shares to $5 from $8. The analyst said she is encouraged by evidence of progress across multiple growth vectors and sees the early part of calendar 2023 as a core period of validation towards BARK becoming a profitable, multi-product company that should attract a larger investor audience.
According to Insider Monkey’s data, 13 hedge funds were bullish on BARK, Inc. (NYSE:BARK) at the end of Q3 2022, compared to 17 funds in the last quarter. Jim Simons’ Renaissance Technologies is the biggest position holder in the company, with 2 million shares worth $3.6 million.
8. Heska Corporation (NASDAQ:HSKA)
Number of Hedge Fund Holders: 14
Heska Corporation (NASDAQ:HSKA) is a Colorado-based company that offers veterinary and animal health diagnostic and specialty products for canine and feline healthcare markets in the United States, Canada, Mexico, Australia, France, Germany, Italy, Malaysia, Spain, and Switzerland. On September 12, Heska Corporation (NASDAQ:HSKA) said that it will acquire 100% of the share capital of LightDeck Diagnostics, an innovative planar waveguide fluorescence immunoassay diagnostics with robust manufacturing and specialized production capabilities for a purchase price of $38.7 million. The transaction is expected to conclude in H1 2023.
On November 14, Piper Sandler analyst David Westenberg reiterated an Overweight rating on Heska Corporation (NASDAQ:HSKA) but trimmed the price target on the shares to $165 from $170. The analyst updated his model to reflect the Q3 earnings report.
Among the hedge funds tracked by Insider Monkey, Heska Corporation (NASDAQ:HSKA) was part of 14 public stock portfolios at the end of Q3 2022, compared to 17 in the earlier quarter. Brian Bares’ Bares Capital Management is a notable stakeholder of the company, with 110,500 shares worth $8 million.
Alger Capital made the following comment about Heska Corporation (NASDAQ:HSKA) in its Q3 2022 investor letter:
“Heska Corporation (NASDAQ:HSKA) sells diagnostic tools and specialty products to the animal health market. Specifically, Heska sells blood testing and supplies, digital imaging products, software and single-use products primarily for cats and dogs. The company also offers private-label vaccines and pharmaceutical production primarily for cattle and other small mammals.
7. PetMed Express, Inc. (NASDAQ:PETS)
Number of Hedge Fund Holders: 15
PetMed Express, Inc. (NASDAQ:PETS) is a Florida-based company that operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. PetMed Express, Inc. (NASDAQ:PETS) paid a per share quarterly dividend of $0.30 on November 30. The dividend yield on December 7 came in at 6.26%.
On September 21, Jefferies analyst Corey Grady assumed coverage of PetMed Express, Inc. (NASDAQ:PETS) and maintained a Hold rating on the shares with an unchanged price target of $20. The analyst expects partnership & M&A announcements over the coming quarter, but said the key to stock performance will be a sustained recovery in new customer growth, which could take time given PetMed Express, Inc. (NASDAQ:PETS)’s "challenged competitive position."
According to Insider Monkey’s data, 15 hedge funds were long PetMed Express, Inc. (NASDAQ:PETS) at the end of September 2022, compared to 11 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 233,095 shares worth $4.55 million.
Here is what Silver Ring Value Partners has to say about PetMed Express, Inc. (NASDAQ:PETS) in its Q4 2021 investor letter:
“PETS was one of the original online sellers of pet medication directly to consumers. Once upon a time this was a growing business, given that they offered much lower prices than those which could be obtained at the vet’s office. However, with Chewy’s entry into the pet pharmacy business and Covetrus’s online offering that allows vets to sell drugs online at only a small premium to PETS’s prices, the value of PETS’s customer proposition has greatly diminished.
6. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF)
Number of Hedge Fund Holders: 16
Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a California-based health and wellness company focused on improving the lives of pets, pet parents, and its Petco partners. The company provides veterinary care, grooming, training, tele-health, and pet health insurance services. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF)’s Q3 revenue of $1.5 billion jumped 4.2% year-over-year, beating market estimates by $10 million. The company also reaffirmed the full-year 2022 guidance for net revenue of $5.975 billion to $6.05 billion, versus a consensus of $6.01 billion.
On December 1, RBC Capital analyst Steven Shemesh reaffirmed an Outperform rating on Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) but lowered the price target on the shares to $16 from $17. The company reported a "solid" comp growth and its in-line margins led to a "better than feared" quarter, though its exposure to variable rate debt and uncertainty around sponsor ownership weigh on the stock, the analyst told investors.
According to Insider Monkey’s Q3 data, 16 hedge funds were bullish on Petco Health and Wellness Company, Inc. (NASDAQ:WOOF), compared to 21 funds in the prior quarter.
Like Chewy, Inc. (NYSE:CHWY), IDEXX Laboratories, Inc. (NASDAQ:IDXX), and Zoetis Inc. (NYSE:ZTS), Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is one of the best pet stocks to invest in.
Baron Funds made the following comment about Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) in its Q3 2022 investor letter:
“Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a pet supply retail chain. Shares were down during the quarter as the company reported earnings that missed analyst expectations. Strong sales in pet food and pet services (two categories that tend to be less discretionary) were more than offset by softer-than-expected sales in non-essential supplies and companion animals (both of which tend to be more discretionary). Given management’s expectation for continued consumer spending softness, the company lowered profit guidance for the remainder of the year. While pet food and pet services carry a higher lifetime value for Petco, these categories are also lower margin and so the mix shift towards these categories will be a short-term drag on profitability. Despite these short-term challenges, we remain positive on Petco’s long-term growth prospects. Weakness in supplies and companion animals has been temporary in prior economic slowdowns and, as a result, should rebound over the coming quarters. At the same time, services continue to expand nicely as the company grows its veterinary practices. Lastly, Petco’s new store concept targeting rural communities is off to a strong start, setting the stage for a second growth concept going forward.”
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Disclosure: None. 11 Best Pet Stocks To Buy Now is originally published on Insider Monkey.