Chewy (NYSE:CHWY) Shares Gap Down – Here’s What Happened

Shares of Chewy (NYSE:CHWY) gapped down before the market opened on Wednesday . The stock had previously closed at $23.27, but opened at $21.85. Chewy shares last traded at $21.5460, with a volume of 3,727,690 shares trading hands.

Key Stories Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Full-year outlook raised: Chewy now expects fiscal 2026 revenue of approximately $13.5 billion to $13.6 billion, well above the roughly $12.8 billion consensus estimate. Third-quarter revenue guidance of $3.3 billion to $3.4 billion was also consistent with expectations. Chewy’s raised outlook gives shares a lift despite falling liquidity
• Positive Sentiment: Revenue and customer growth continued: Second-quarter sales rose 7.3% year over year to $3.33 billion, slightly exceeding estimates. Active customers increased 3.8% to 21.705 million, while Autoship sales reached $2.82 billion, or 84.6% of revenue. Chewy Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability improved: Adjusted EPS was $0.36, matching consensus and rising from $0.33 a year earlier. Net income increased to $80.5 million from $62 million, while net margin expanded year over year; adjusted EBITDA was $226.7 million, or a 6.8% margin. Chewy Fiscal Q2 Earnings Snapshot
• Neutral Sentiment: Quarterly beat was limited: Revenue exceeded estimates by only about 0.4%, and adjusted earnings matched forecasts rather than beating them. Gross margin remained unchanged at 30.4%, suggesting that the improved outlook—not a major quarterly surprise—was the primary catalyst. Chewy Reports Q2 Results
• Negative Sentiment: Insider selling may weigh on sentiment: Reported insider transactions over the past six months included seven sales and no purchases, including sales by Chief Executive Officer Sumit Singh. Chewy Q2 Revenue Rises 7.3% to $3.33 Billion

Wall Street Analyst Weigh In

CHWY has been the subject of several analyst reports. Citigroup reissued a “market outperform” rating on shares of Chewy in a report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Chewy from $45.00 to $32.00 and set a “buy” rating on the stock in a report on Thursday, June 11th. Zacks Research upgraded shares of Chewy from a “strong sell” rating to a “hold” rating in a research report on Tuesday, August 11th. UBS Group reduced their price objective on shares of Chewy from $32.00 to $24.00 and set a “neutral” rating for the company in a research note on Thursday, June 11th. Finally, The Goldman Sachs Group decreased their price objective on shares of Chewy from $46.00 to $34.00 and set a “buy” rating on the stock in a research report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, Chewy has an average rating of “Moderate Buy” and a consensus price target of $31.27.

Chewy Stock Down 9.0%

The business has a 50 day moving average price of $22.44 and a two-hundred day moving average price of $23.17. The stock has a market cap of $8.67 billion, a P/E ratio of 35.33, a price-to-earnings-growth ratio of 0.94 and a beta of 1.42.

Chewy (NYSE:CHWY) last issued its earnings results on Wednesday, September 9th. The company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.18. Chewy had a return on equity of 60.02% and a net margin of 1.99%.The company had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.32 billion. During the same quarter last year, the company earned $0.33 EPS. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. On average, research analysts forecast that Chewy will post 0.8 earnings per share for the current year.

Insider Transactions at Chewy

In other news, General Counsel Da-Wai Hu sold 4,203 shares of Chewy stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $19.49, for a total transaction of $81,916.47. Following the sale, the general counsel owned 4,103 shares in the company, valued at $79,967.47. This trade represents a 50.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Chewy

Several hedge funds have recently modified their holdings of CHWY. Osterweis Capital Management Inc. bought a new position in shares of Chewy during the second quarter worth $30,000. Los Angeles Capital Management LLC bought a new stake in Chewy in the 4th quarter valued at $31,000. Harbour Investments Inc. increased its holdings in Chewy by 81.4% in the 4th quarter. Harbour Investments Inc. now owns 907 shares of the company’s stock valued at $30,000 after acquiring an additional 407 shares during the last quarter. Modus Advisors LLC bought a new stake in Chewy in the 4th quarter valued at $34,000. Finally, EverSource Wealth Advisors LLC lifted its stake in Chewy by 412.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company’s stock worth $46,000 after purchasing an additional 878 shares in the last quarter. Hedge funds and other institutional investors own 93.09% of the company’s stock.

Chewy Company Profile

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.