Shares in Petmed Express (PETS), an American online pet pharmacy, closed Thursday’s trading 68.36% higher following an $84 million acquisition from SilverCape Investments.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
The Singapore-based investment firm offered to buyout the retailer’s outstanding shares in a $4-per-share deal, PetMed announced, noting that it did not solicit the offer and it is non-binding.
PetMed to Review Acquisition Offer
The Florida-based company has said it will carefully review the proposal.
“PetMeds notes that SilverCape’s letter does not constitute a formal offer capable of acceptance and, as such, stockholders do not need to take any action at this time,” PetMed clarified in a statement.
PetMed Battles Revenue Declines
SilverCape’s offer comes at a challenging time for PetMed and other online and brick-and-mortar retailers. As a retailer, PetMed sells prescribed and non-prescription pet medicines, health products, and supplies directly to owners of pets such as dogs and cats. pet owners.
However, PetMed has been battling revenue declines due to intense competition from larger retailers like Amazon (AMZN) and Chewy (CHWY), and economic pressure driving lower consumer spending. In its Q4 2025 earnings results released in October, the retailer’s revenue fell 22% to $46.47 million. Its net loss also widened to $11.64 million, with a loss per share of 56 cents.
PetMed Undergoes Leadership Shakeup
The online pet retailer also recently underwent a big leadership shakeup with the resignation of CEO Sandra Campos and chief financial officer (CFO) Robyn D’Elia amid an investigation into the company’s revenue recognition and other operational issues.
Revenue recognition is an accounting principle that says revenue should be recorded when it is earned and realizable. The principal influences the reporting of sales and profit figures.
Both executives were replaced by interim executives Leslie C.G. Campbell and Doug Krulik, respectively.
Is PETS Stock a Good Long-Term Investment?
TipRanks’ AI analysts mostly rate PetMed’s shares with a Neutral rating, followed by Underperform. For instance, OpenAI-4o holds a Neutral rating that comes with a score of 42 out of 100 and a PETS price target of $1.50.
This rating indicates approximately 50% downside risk on the penny stock. The AI analyst cited the online pet pharmacy’s financial and operational challenges for the rating.
