Chewy (NYSE:CHWY) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Chewy (NYSE:CHWY) from a buy rating to a hold rating in a research note published on Sunday morning.

Several other equities research analysts have also issued reports on CHWY. Guggenheim reaffirmed a “buy” rating and issued a $45.00 price objective (up from $42.00) on shares of Chewy in a research note on Thursday, June 12th. Morgan Stanley decreased their price target on Chewy from $50.00 to $48.00 and set an “overweight” rating on the stock in a report on Thursday, September 11th. TD Cowen cut their price objective on shares of Chewy from $50.00 to $48.00 and set a “buy” rating on the stock in a research report on Thursday, September 11th. Mizuho raised shares of Chewy from a “neutral” rating to an “outperform” rating and increased their target price for the company from $44.00 to $50.00 in a research note on Monday, September 8th. Finally, JMP Securities reaffirmed a “market outperform” rating and set a $48.00 price target on shares of Chewy in a research note on Thursday, September 11th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Chewy has an average rating of “Moderate Buy” and a consensus target price of $45.72.

Chewy Stock Performance

CHWY stock opened at $38.30 on Friday. Chewy has a fifty-two week low of $26.28 and a fifty-two week high of $48.62. The firm has a fifty day moving average price of $38.34 and a 200 day moving average price of $38.43. The firm has a market cap of $15.89 billion, a PE ratio of 109.41, a price-to-earnings-growth ratio of 9.33 and a beta of 1.65.

Chewy (NYSE:CHWY) last posted its earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.33 by ($0.19). Chewy had a return on equity of 50.45% and a net margin of 1.22%.The business had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.08 billion. During the same quarter last year, the firm earned $0.24 earnings per share. The business’s quarterly revenue was up 8.6% on a year-over-year basis. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, equities analysts predict that Chewy will post 0.24 EPS for the current year.

Insider Activity at Chewy

In other Chewy news, CTO Satish Mehta sold 8,727 shares of the firm’s stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $35.82, for a total value of $312,601.14. Following the completion of the sale, the chief technology officer owned 276,467 shares of the company’s stock, valued at approximately $9,903,047.94. This trade represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Sumit Singh sold 29,557 shares of the business’s stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $35.57, for a total value of $1,051,342.49. Following the sale, the chief executive officer owned 540,406 shares in the company, valued at approximately $19,222,241.42. The trade was a 5.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 68,657 shares of company stock valued at $2,444,311 in the last ninety days. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Chewy

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC lifted its stake in Chewy by 150.2% during the 1st quarter. Parallel Advisors LLC now owns 788 shares of the company’s stock valued at $26,000 after acquiring an additional 473 shares during the period. Osterweis Capital Management Inc. purchased a new position in shares of Chewy during the second quarter worth $30,000. Golden State Wealth Management LLC lifted its position in Chewy by 104.6% during the first quarter. Golden State Wealth Management LLC now owns 941 shares of the company’s stock valued at $31,000 after purchasing an additional 481 shares during the period. N.E.W. Advisory Services LLC purchased a new stake in Chewy in the first quarter valued at $44,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in Chewy by 412.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company’s stock valued at $46,000 after purchasing an additional 878 shares during the last quarter. Institutional investors and hedge funds own 93.09% of the company’s stock.

Chewy Company Profile

Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications.