Patterson Companies, Inc. (PDCO) Good Days Over?

Analysts at Goldman, assumed coverage of Patterson Companies, Inc. (NASDAQ:PDCO) with Sell recommendation, according to their opinion released on October 19. Analysts at Stifel are sticking to their Hold recommendation. However, on June 18, they lifted target price for these shares to $23 from $28. Analysts at Stifel, made their first call for the stock with a Hold rating, according to a research note that dated back to June 18.

Patterson Companies, Inc. (NASDAQ:PDCO) short sellers believe it will rise in price. The most recent short interest data has been released for the November 15th settlement date, which shows a -367,507 share decrease in total short interest for PDCO, to 15,580,132, a retreat of 2.3% since October 31st. Average daily volume for Patterson Companies, Inc. at the November 15th settlement plunged to 1,227,042, as compared to 1,583,538 at the October 31st report. That brought days to cover to 12.69731, a 26.08% increase from the 10.07089 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 3.1 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Patterson Companies, Inc. (NASDAQ:PDCO)’s prospects. The earliest insider trade took place on 01/11/2018. Gugino Ann B parted with a total of 0.75 thousand shares of company at average share price of $36.38. The total for the sales was set at $27.29 thousand. After this transaction, the Executive Vice President & CFO account balance stood at 41.96 thousand shares. The stock lost -36.53 percent since that insider sale. On 11/24/2017, Buck John D, Director, purchased 2.83 thousand shares at a price per share of $34.93. This added 98.99 thousand shares to the insider’s fortune and the stock saw a -33.9 percent retreat in value since the news became public. This transaction left 54.63 thousand shares in the Director account. On 10/11/2017, Executive Vice President & CFO Gugino Ann B performed a sale transaction worth $27.55 thousand. This sale at $36.73 each has eliminated 0.75 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -37.14 percent decrease since the transaction was reported. The insider now is left with 39.03 thousand shares remaining in the account. Gugino Ann B, who performs the Executive Vice President & CFO job, sold 0.75 thousand shares for $31.8 thousand. The disposal occurred on 07/11/2017 was priced at $42.4 per share. The share price plunged -45.54 percent since the reporting date. Gugino Ann B now left with a stake of 39.78 thousand PDCO stock worth $918.61 thousand after the insider selling.

Patterson Companies, Inc. (PDCO) is expected to jump by -2.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $29-month high price target. This represents a whopping 25.6 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $21, which represents a return potential of -9.05 percent when compared to the closing price of the stock of $23.09 on Thursday, December 06. The lowest price target for the stock is $19 — slightly more than -17.71 percent from PDCO’s current share price.

The shares are currently floating around the first support level of $21.82. Below this, the next support is placed in the zone of $20.56. Till the time, the PDCO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 40.72 on daily chart, which may remain a cause for concern. If the price breaks below $20.56 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $25.36 mark may result into a pull-back move towards $27.64 level.

PDCO shares dropped -1.48 points or -6.02 percent on Thursday to $23.09 with a heavy trade volume of 4.748 million shares. After opening the session at $26.37, the shares went as high as $26.37 and as low as $22.83, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.12 billion and now has 92.03 million shares outstanding. Patterson Companies, Inc. (PDCO) stock has lost -1.03 percent of market value in 21 trading days.

PDCO stock has a trailing 3-year beta of 1.04, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.96 a share in the trailing twelve months. The stock’s value has fallen -36.09 percent year to date (YTD) against a decline of -36.43 percent in 12 month’s time. The company’s shares still trade -40.06 percent away from its 1-year high of $38.52 and 14.19 percent up from 52-week low of $20.22. The average consensus rating on the company is 3.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Patterson Companies, Inc. (PDCO) are trading at a P/E ratio of 21.66 times earnings reported for the past 12 months. The industry PDCO operates in has an average P/E of 32.18. Its P/E ratio went as low as 18.5X and as high as 26.68 over the 5-year span. Further, it is sporting a 0.39 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.7. 21.5 percent is the gross profit margin for Patterson Companies, Inc. and operating margin sits at 3 percent. Along with this, the net profit margin is 3 percent.

Analysts are forecasting revenue to climb 2.2 percent to $1.42B in the next fiscal quarter, while earnings are seen soaring by nearly -27.45 percent to $0.37 per share. History has shown that shares in Patterson Companies, Inc. have gone down on 22 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.26 per share, worse than the $0.34, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.34B, better than the $1.3B analysts expected. Earnings are estimated to increase by -26.6 percent this year, 9.38 percent next year and continue to increase by 6.06 percent annually for the next 5 years.