EW YORK (TheStreet) -- Shares of PetSmart, Inc. (PETM) are up 0.77% to $67.80 as it's reported that the company is under pressure from hedge fund Jana Partners LLC to pursue strategic alternatives, and as it says it's reviewing changes to its capital structure, looking to return more money to shareholders, Bloomberg reports.
There is no assurance that the review will lead to any actions and the timing of potential changes is uncertain, the pet-supply retailer said in a filing today, Bloomberg added.
The fund also called on the company to improve disclosures and the composition of management and its board.
TheStreet Ratings team rates PETSMART INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETSMART INC (PETM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: