Chewy (NYSE:CHWY) Sets New 1-Year Low – Here’s Why

Chewy (NYSE:CHWY) reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $21.40 and last traded at $21.6550, with a volume of 9938805 shares. The stock had previously closed at $22.90.

Analyst Ratings Changes

Several research firms have issued reports on CHWY. Wedbush cut their price objective on Chewy from $42.00 to $36.00 and set an “outperform” rating on the stock in a report on Thursday, March 26th. TD Cowen boosted their price objective on Chewy from $39.00 to $42.00 and gave the stock a “buy” rating in a report on Thursday, March 26th. Argus raised Chewy to a “strong-buy” rating in a research note on Tuesday, April 7th. Citigroup lowered their target price on Chewy from $40.00 to $37.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, The Goldman Sachs Group lowered their target price on Chewy from $52.00 to $46.00 and set a “buy” rating on the stock in a research note on Thursday, March 26th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $42.77.

Chewy Price Performance

The company has a market capitalization of $8.88 billion, a price-to-earnings ratio of 40.99, a price-to-earnings-growth ratio of 0.93 and a beta of 1.50. The business has a fifty day moving average price of $25.36 and a 200 day moving average price of $29.27.

Chewy (NYSE:CHWY) last issued its quarterly earnings results on Wednesday, March 25th. The company reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.19). Chewy had a return on equity of 53.48% and a net margin of 1.77%.The business had revenue of $3.26 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same quarter last year, the firm earned $0.28 earnings per share. The firm’s quarterly revenue was up .5% compared to the same quarter last year. As a group, sell-side analysts predict that Chewy will post 0.89 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, General Counsel Da-Wai Hu sold 8,149 shares of the company’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total value of $219,289.59. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Sumit Singh sold 83,306 shares of the company’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $2,132,633.60. Following the completion of the transaction, the chief executive officer owned 874,061 shares of the company’s stock, valued at $22,375,961.60. The trade was a 8.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 95,675 shares of company stock valued at $2,459,955 over the last 90 days. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Quent Capital LLC acquired a new position in shares of Chewy in the third quarter valued at $27,000. Osterweis Capital Management Inc. acquired a new position in shares of Chewy in the second quarter valued at $30,000. CoreCap Advisors LLC raised its stake in shares of Chewy by 306.3% in the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company’s stock valued at $28,000 after purchasing an additional 637 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of Chewy in the fourth quarter valued at $31,000. Finally, Harbour Investments Inc. raised its stake in shares of Chewy by 81.4% in the fourth quarter. Harbour Investments Inc. now owns 907 shares of the company’s stock valued at $30,000 after purchasing an additional 407 shares in the last quarter. 93.09% of the stock is currently owned by institutional investors and hedge funds.

About Chewy

Chewy, Inc (NYSE: CHWY) is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.