Petco Health and Wellness Company, Inc. (WOOF) saw its stock soar 8.11% in pre-market trading on Wednesday, following news of a significant insider purchase by the company's CEO. This surge reflects growing investor confidence in the pet retailer's future prospects.

According to a recent regulatory filing, Petco's CEO Joel Anderson acquired 1.59 million shares of common stock on March 28th. The transaction, valued at approximately $4.72 million, was executed as part of an option exercise. Such a substantial investment by a top executive is often interpreted as a strong vote of confidence in the company's outlook and strategy.

Insider buying, particularly by high-ranking officials like the CEO, is closely watched by investors as it can signal management's belief in the company's undervaluation or positive future performance. The market's enthusiastic response to Anderson's stock purchase suggests that investors are aligning their sentiment with the CEO's apparent optimism about Petco's prospects in the competitive pet care industry. This significant pre-market movement indicates that the market is reacting positively to the insider buying news, potentially setting the tone for the regular trading session.