PetMed Express Shares Face Persistent Selling Pressure

The stock of PetMed Express continues to struggle, mired in a pronounced downtrend. Closing at $1.61 on December 9, the equity has been in a sustained decline since mid-October. The critical question for investors is whether a price floor is near. Examining technical indicators, analyst sentiment, and recent corporate guidance provides a framework for the outlook.

Operational challenges are at the forefront. On November 13, the company issued a sobering revenue forecast. For its second fiscal quarter ending September 30, 2025, PetMed Express anticipates net revenues in the range of $43.4 million to $44.5 million. This compares to $58.0 million reported in the same period last year. The forecast for the first six months is similarly constrained, projected at $94.5–$95.6 million, down significantly from $124.3 million a year prior. This points to a clear contraction in sales.

Market experts currently express near-term caution. The consensus rating among analysts sits at "Sell." However, the median 12-month price target is $3.20, suggesting a potential upside of approximately 98.76% from current levels. This stark divergence indicates that while immediate sentiment is negative, longer-term expectations for a recovery are substantially higher than the present market valuation.

Technical Analysis and Trading Activity

From a chart perspective, the picture is weak. The share price has declined roughly 37.74% since October 15. A pivot top formation on October 24 confirmed a bearish reversal, with the stock falling an additional 7.56% since that point. Key moving averages and other technical indicators are currently flashing sell signals.

Should investors sell immediately? Or is it worth buying PetMed Express?

Important price levels to watch:
- Resistance: $1.89 and $2.00.
- Support: $1.53 and $1.42.

Trading activity on December 8 reinforced the bearish tone. The stock declined 3.03% on elevated volume of around 240,380 shares, representing a dollar volume of approximately $393,580. Rising volume on a down day is typically viewed as a negative signal. As of December 5, the short interest percentage was 6.23%, a decrease from the previous day. Some market participants interpret a reduction in short interest as a potential sign that bearish bets are being covered in anticipation of a bottom.

Corporate Developments

The company has taken recent governance actions. PetMed Express announced on November 26 that it extended its existing shareholder rights plan, commonly referred to as a "poison pill," for an additional year. Furthermore, effective October 30, James LaCamp was appointed to the Board of Directors and as the Chair of the Audit Committee.

Path Forward and Key Levels

In the near term, the equity remains vulnerable as long as it trades near or below the identified support levels of $1.53 and $1.42. A sustained move above the $1.89 to $2.00 resistance zone would provide the first technical indication of a potential recovery. Fundamentally, the short-term trajectory will likely be dictated by the actual revenue figures in upcoming quarterly reports. The stock's 52-week range, between $1.57 and $6.70, underscores the magnitude of its decline and the challenge ahead. Analyst targets, however, imply significantly higher prices over a twelve-month horizon.