Nina Capital Holdings Inc., a ten percent owner of PetMed Express Inc. (NASDAQ:PETS), has recently acquired additional shares in the company. According to a recent SEC filing, Nina Capital Holdings purchased 12,500 shares of PetMed Express common stock on September 9, 2024. The shares were bought at a price of $3.34 each, amounting to a total transaction value of $41,750.
Following this acquisition, Nina Capital Holdings, along with Moises Tache Galante and his spouse Stephannie Matz Zyman, now collectively own 2,078,000 shares of PetMed Express. This total includes 1,550,000 shares held by Nina Capital Holdings and 528,000 shares held jointly by Galante and Zyman. The purchase reflects continued interest and investment in PetMed Express by the shareholders.
In other recent news, PetMed Express has experienced several noteworthy developments. The company reported a 6.6% increase in net sales for the fourth quarter, largely due to the acquisition of PetCareRx. Despite a challenging first quarter marked by a 13% decline in sales, PetMed Express reported a gross profit margin of 26.4% and a net income of $3.8 million. The company's cash and equivalents stand at $46 million, projected to increase to $53 million by August.
PetMed Express has also adopted a new inducement incentive plan, aimed at attracting and retaining top talent, and elected six directors at its Annual Meeting of Shareholders. In line with these efforts, the company appointed Leah Solivan to its Board of Directors and filled key executive roles, including a new Chief Marketing Officer and Chief Digital and Technology Officer.
In terms of analyst notes, Lake Street Capital Markets revised its outlook on PetMed Express, downgrading the stock from Buy to Hold, with a price target of $3.50. Despite the downgrade, Lake Street maintains a positive outlook on the company's ability to attract new customers and grow recurring revenue streams. These recent developments highlight PetMed Express's strategic initiatives and commitment to competitive compensation practices and sustainable growth.
InvestingPro Insights
The recent share acquisition by Nina Capital Holdings comes at a time when PetMed Express (NASDAQ:PETS) is facing some financial challenges. According to InvestingPro data, the company's stock price has fallen significantly over the last year, with a one-year price total return of -59.8% as of the latest available data. This decline is reflected in the company's current market capitalization of $81.21 million.
Despite these challenges, there are some positive indicators for PetMed Express. An InvestingPro Tip notes that the company holds more cash than debt on its balance sheet, which could provide financial flexibility in uncertain times. Additionally, analysts predict that the company will be profitable this year, suggesting potential for a turnaround.
From a valuation perspective, PetMed Express is trading at a low revenue valuation multiple, which might indicate an opportunity for value investors. The company's price-to-book ratio stands at 0.87, suggesting that the stock is trading below its book value.
Investors considering PetMed Express should note that there are 10 additional InvestingPro Tips available for this stock, offering a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for those looking to make informed investment decisions in the pet care industry.
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