Q2 STOCKS TO BUY

Petco Stock Eyes Rebound After CEO’s Big Buy

WOOF sports a more than 22% year-to-date deficit

Deputy Editor
Apr 2, 2025 at 9:40 AM
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Shares of pet retail giant Petco Health and Wellness Company Inc (NASDAQ:WOOF) are 16.4% higher out of the gate, last seen trading at $3.45, after a SEC filing revealed CEO Joel Anderson purchased nearly 1.6 million shares across two sessions -- a $4.7 million investment that signals strong conviction from the top. The move suggests leadership sees deep value in the beaten-down pet retailer at current levels.

That vote of confidence comes at a critical time. Despite a 31.5% post-earnings bull gap last week, WOOF is still down 22.3% in 2025. However, the equity maintains a 42.3% year-over-year lead -- evidence that longer-term momentum could be building.

Analysts remain pessimistic. Of the 12 brokerages covering WOOF, nine maintain a “hold” or worse rating. Meanwhile, short interest remains elevated, with 28.28 million shares sold short, which accounts for a hefty 36.8% of the stock’s total available float.

Options traders may want to take note. Petco Health and Wellness stock’s Schaeffer's Volatility Index (SVI) of 86% ranks in the 20th percentile of its annual range, suggesting short-term options are attractively priced at the moment.

 
 

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