Chewy's (CHWY) Market Outperform Rating Reiterated at Citizens Jmp

Key Points

• Citizens JMP reiterated its “market outperform” rating on Chewy and set a $28 price target, implying approximately 36% upside from the stock’s $20.54 opening price. The broader analyst consensus is “Moderate Buy,” with an average target of $31.32.
• Chewy reported quarterly revenue of $3.33 billion and adjusted earnings of $0.36 per share, both slightly ahead of expectations, while revenue increased 7.3% year over year. Management also raised its full-year 2026 revenue outlook to $13.5 billion–$13.6 billion.
• Despite the earnings beat, shares fell 11.7% as investors focused on a free-cash-flow shortfall, acquisition-related liquidity concerns and flat gross margins. Autoship sales and active customers continued to grow, but insider activity cited in the report consisted of stock sales rather than purchases.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "market outperform" rating reiterated by stock analysts at Citizens Jmp in a research report issued to clients and investors on Thursday, Benzinga reports. They presently have a $28.00 target price on the stock. Citizens Jmp's target price would suggest a potential upside of 36.35% from the company's current price.

Other analysts have also issued reports about the stock. Moffett Nathanson set a $28.00 target price on shares of Chewy in a research report on Thursday, June 11th. Raymond James Financial lifted their price objective on Chewy from $25.00 to $28.00 and gave the company an "outperform" rating in a report on Friday, September 4th. Morgan Stanley lowered their price objective on Chewy from $42.00 to $37.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 26th. Bank of America dropped their target price on Chewy from $33.00 to $31.00 in a report on Thursday, June 11th. Finally, Jefferies Financial Group restated a "hold" rating and set a $23.00 target price on shares of Chewy in a research report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, Chewy presently has a consensus rating of "Moderate Buy" and a consensus price target of $31.32.

Chewy Trading Down 11.7%

Shares of NYSE CHWY opened at $20.54 on Thursday. The firm has a market capitalization of $8.41 billion, a price-to-earnings ratio of 34.23, a PEG ratio of 0.93 and a beta of 1.42. Chewy has a one year low of $17.40 and a one year high of $40.55. The business has a fifty day simple moving average of $22.44 and a 200 day simple moving average of $23.13.

Chewy (NYSE:CHWY - Get Free Report) last posted its quarterly earnings results on Wednesday, September 9th. The company reported $0.36 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.18. The firm had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.32 billion. Chewy had a net margin of 1.99% and a return on equity of 60.02%. The business's revenue was up 7.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.33 earnings per share. On average, research analysts anticipate that Chewy will post 0.8 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Chewy news, General Counsel Da-Wai Hu sold 4,203 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $19.49, for a total transaction of $81,916.47. Following the transaction, the general counsel owned 4,103 shares of the company's stock, valued at approximately $79,967.47. This represents a 50.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.34% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Chewy

A number of institutional investors and hedge funds have recently made changes to their positions in CHWY. Wellington Management Group LLP grew its position in shares of Chewy by 295.9% during the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company's stock worth $712,841,000 after buying an additional 13,171,325 shares during the period. Viking Global Investors LP lifted its holdings in Chewy by 146.9% in the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company's stock valued at $447,386,000 after buying an additional 8,052,955 shares during the period. AQR Capital Management LLC lifted its holdings in Chewy by 120.2% in the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company's stock valued at $407,948,000 after buying an additional 5,564,803 shares during the period. California State Teachers Retirement System boosted its stake in Chewy by 1,828.1% in the second quarter. California State Teachers Retirement System now owns 5,042,544 shares of the company's stock valued at $99,086,000 after acquiring an additional 4,781,020 shares during the last quarter. Finally, Norges Bank bought a new position in Chewy in the fourth quarter valued at approximately $154,647,000. Institutional investors own 93.09% of the company's stock.

More Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported second-quarter revenue of $3.33 billion, up 7.3% year over year and slightly ahead of the $3.32 billion consensus estimate. Adjusted EPS of $0.36 also exceeded the cited $0.18 consensus, while net income rose to $80.5 million from $62 million a year earlier. Chewy Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its full-year outlook, projecting fiscal 2026 revenue of $13.5 billion to $13.6 billion versus consensus of $12.8 billion. Third-quarter revenue guidance of $3.3 billion to $3.4 billion was broadly in line with expectations. Adjusted EBITDA margin reached 6.8%.
• Positive Sentiment: Autoship sales increased to approximately $2.8 billion, representing 84.6% of quarterly revenue, and active customers rose 3.8% to 21.7 million. Management also highlighted AI-related efficiency initiatives and growth in higher-margin services. Chewy Q2 2026 Earnings Call Transcript
• Neutral Sentiment: TD Cowen and Bank of America reaffirmed Buy ratings, but reduced their price targets to $32 and $27, respectively, reflecting disciplined investment, margin considerations and a shift toward services. Chewy analyst rating update
• Negative Sentiment: The main catalyst for the selloff was a free-cash-flow shortfall, compounded by concerns about lower liquidity following acquisition-related cash usage. Gross margin remained flat at 30.4%, while consumers continued to limit discretionary spending on pet treats and other products. Chewy free cash flow report
• Negative Sentiment: Investors viewed the earnings beat as largely in line rather than a major upside surprise, and recent disclosures show open-market insider activity consisting of sales rather than purchases.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.