Can Petco Bark Its Way Back to a Bony Infinity & Beyond?

Petco Health and Wellness Company Class A 
$3.99 +0.76 (+23.53%)
As of Aug-29-20253:59:59 PM ET 🐕

🚨 Trigger #1: The CEO Went Full Dog Dad on Shares

Joel Anderson, Petco’s CEO, didn’t just nibble — he wolfed down 1.58M shares at $2.97 back in March. That’s a +49% bump to his holdings 🐕💰. Translation: he clearly believes in this dog’s day.

Other insiders followed suit:

• 🐾 Cameron Breitner (Director): 750K shares @ $3.14 (new position)

• 🐾 Gary Briggs (Director): 30K shares @ $3.33 (+75% increase)

This isn’t insider snacking — it’s insider feasting.

🚨 Trigger #2: Surprise Profit (and a Stock Pop)

On Aug 29, 2025, WOOF stock jumped 23.5% 🚀 after Petco posted a surprise Q2 profit (yes, profit — your dog’s tail isn’t the only thing wagging).

• 🛒 Net sales: $1.5B (down 2.3% Y/Y, slight miss)

• 💵 Gross margin: 39.3% (+120 bps)

• 🐕 Net income: $14M (vs nearly -$25M a year ago)

• 💪 Adjusted EBITDA: $113.9M (+$30M Y/Y)

Investors cheered like a pup spotting the treat jar, and management even raised full-year earnings guidance.

🏛️ Institutions Are Chasing Their Tail Too

Check out the kennel of big money behind WOOF:

• 🐕 CVC Management: 145.9M shares

• 🐕 Canada Pension Plan: 59.7M shares

• 🐕 Vanguard: 7.8M shares

• 🐕 BlackRock: 8.3M shares

• 🐕 Citadel: +3.8M shares (+73,727%!)

Institutions hold 127% of the float (thanks, short interest + lending). That’s a crowded dog park.

For Petco Health and Wellness Company (WOOF)'s Institutional Ownership breakdown, 🔍 see here

🏔️ Meet the Alpha Holder: CVC Management Holdings

Petco’s biggest shareholder isn’t just wagging a small tail — it’s the entire alpha wolf of the pack: CVC Management Holdings. 🐺💼

1. 🐘 Big Wallet Energy: CVC’s private equity platform manages a jaw-dropping €119 billion in assets, across four mega-strategies: Europe/Americas, Asia, Strategic Opportunities, and Growth. That’s not just deep pockets — it’s a whole luxury kennel stuffed with cash.

2. 🌍 Record-Breaking Fundraising: In 2023, CVC raised the largest private equity fund in history at €26 billion. Yep, the leash was long enough to wrap around the globe. By June 2024, CVC strutted in at #4 on Private Equity International’s PEI 300, ranking among the planet’s most powerful PE firms.

3. 🎿 Peaks & Portfolios: At the helm? Rob Lucas, CEO of CVC Capital Partners PLC, and lead Managing Partner of the Investment Committee for Europe/Americas and Strategic Opportunities. He’s overseen big deals like Ontic, Ethniki, Neptune, Skybet, and even a partnership with the Six Nations rugby tournaments.

   But here’s the kicker: Rob’s not just a deal-maker — he’s a mountaineer. 🧗♂️ He’s summited Everest, K2, and all Seven Summits. Question is, can he now help climb the tree of Petco’s recovery? 🌳🐶

Serious backers with serious money — Petco’s turnaround may have more bite than bark after all.

📊 The Numbers: Ruff but Improving

• Top line: Still shrinking (-2.3% Y/Y).

• Bottom line: Actually positive, with stronger margins.

• Cash flow: Q2 OCF $70.4M (up from $60.9M).

• Valuation:

  • P/S: 0.18 (cheap like adoption fees at the shelter)

  • P/B: 0.98 (fair value-ish)

  • EV/Revenue: 0.64 (bargain bin territory)

Shares still trade ~90% below ATH ($31.08 in 2021). That’s one long walk downhill… but maybe the leash just tightened. 🦴

👉 Want the full picture? Dive into Petco Health and Wellness Company (WOOF)'s financials here.

🐾 Risks: Don’t Get Bitten

• Debt leash is heavy: Debt-to-EBITDA ~4x. High rates = expensive kibble.

• Competition is feral: PetSmart, Chewy, Amazon… all barking at the same hydrant.

• Still lossy overall: Negative ROE, high leverage = thin safety net.

• Macro headwinds: If consumers trade down from “premium organic puppy pâté” to “whatever’s cheapest,” margins may drool away.

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

🐶 Verdict: Speculative, But Could Fetch Returns

Insiders and institutions clearly see value. Profitability is wagging again. But debt + competition means this stock is not house-trained yet.

For the brave? WOOF could be a turnaround treat. For others? Might still be chasing its tail. Still, we increasingly like the odds here...

⚠️ Disclaimer:

Always a chance you'll bark up the wrong tree. 🐕 Invest at your own risk. 
Please DYOR, hold the FOMO, and don’t invest what you can’t afford to lose.
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