Robert W. Baird Issues Pessimistic Forecast for Chewy (NYSE:CHWY) Stock Price

Key Points

• Robert W. Baird cut Chewy’s price target from $30 to $28 but maintained an “outperform” rating, implying roughly 36% upside from the prior close. Analysts overall remain moderately bullish, with a consensus target of $31.32.
• Chewy reported quarterly revenue of $3.33 billion and adjusted EPS of $0.36, both ahead of estimates, while revenue increased 7.3% year over year. Management also raised its fiscal 2026 revenue outlook to $13.5 billion-$13.6 billion.
• Investor concerns include a free-cash-flow shortfall, flat gross margin and acquisition-related liquidity pressures, contributing to the recent selloff. Chewy’s general counsel also sold shares, while institutional investors own 93.09% of the stock.

Chewy (NYSE:CHWY - Get Free Report) had its target price reduced by analysts at Robert W. Baird from $30.00 to $28.00 in a research note issued on Thursday, Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Robert W. Baird's price target points to a potential upside of 36.35% from the stock's previous close.

Other equities analysts also recently issued research reports about the stock. Citizens Jmp dropped their price target on shares of Chewy from $45.00 to $28.00 and set a "market outperform" rating for the company in a research note on Thursday, June 11th. Raymond James Financial boosted their price objective on shares of Chewy from $25.00 to $28.00 and gave the stock an "outperform" rating in a research note on Friday, September 4th. UBS Group downgraded Chewy from a "neutral" rating to a "hold" rating and set a $28.00 price objective for the company. in a report on Thursday. TD Cowen reaffirmed a "buy" rating on shares of Chewy in a report on Thursday. Finally, Moffett Nathanson set a $28.00 price target on Chewy in a research report on Thursday, June 11th. One equities 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. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $31.32.

Chewy Stock Performance

NYSE CHWY opened at $20.54 on Thursday. Chewy has a fifty-two week low of $17.40 and a fifty-two week high of $40.55. The firm's fifty day moving average price is $22.44 and its two-hundred day moving average price is $23.13. The stock has a market cap of $8.41 billion, a PE ratio of 34.23, a PEG ratio of 0.93 and a beta of 1.42.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings data on Wednesday, September 9th. The company reported $0.36 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.18. Chewy had a net margin of 1.99% and a return on equity of 60.02%. The business had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.32 billion. During the same quarter last year, the business earned $0.33 EPS. The firm's quarterly revenue was up 7.3% on a year-over-year basis. As a group, sell-side analysts predict that Chewy will post 0.8 earnings per share for the current fiscal year.

Insider Activity at Chewy

In related news, General Counsel Da-Wai Hu sold 4,203 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the general counsel owned 4,103 shares of the company's stock, valued at $79,967.47. This trade represents a 50.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Chewy

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada grew its stake in Chewy by 2.5% in the first quarter. Royal Bank of Canada now owns 220,509 shares of the company's stock valued at $7,168,000 after acquiring an additional 5,466 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Chewy during the first quarter worth approximately $510,000. NewEdge Advisors LLC raised its position in shares of Chewy by 5,238.3% during the first quarter. NewEdge Advisors LLC now owns 32,510 shares of the company's stock worth $1,057,000 after purchasing an additional 31,901 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Chewy by 1.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,176,138 shares of the company's stock worth $38,236,000 after purchasing an additional 17,788 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Chewy by 31.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 383,966 shares of the company's stock worth $12,483,000 after purchasing an additional 92,129 shares in the last quarter. 93.09% of the stock is owned by institutional investors.

Key Stories Impacting Chewy

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.

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