Rosenblatt Securities Issues Pessimistic Forecast for Chewy (NYSE:CHWY) Stock Price

Key Points

• Rosenblatt Securities lowered Chewy’s price target from $25 to $24 and maintained a neutral rating, though the target still implies 16.87% upside. Analysts overall rate the stock “Moderate Buy,” with an average target of $31.32.
• Chewy reported quarterly revenue of $3.33 billion, up 7.3% year over year, and adjusted EPS of $0.36, beating consensus estimates. Management also raised its full-year revenue outlook to $13.5 billion–$13.6 billion.
• Shares fell 11.7% as investors focused on a free-cash-flow shortfall, flat gross margins and acquisition-related liquidity concerns despite the earnings beat and stronger guidance.

Chewy (NYSE:CHWY - Get Free Report) had its price objective decreased by stock analysts at Rosenblatt Securities from $25.00 to $24.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Rosenblatt Securities' price target indicates a potential upside of 16.87% from the company's previous close.

A number of other analysts have also issued reports on CHWY. Deutsche Bank Aktiengesellschaft cut their target price on Chewy from $45.00 to $32.00 and set a "buy" rating on the stock in a research report on Thursday, June 11th. Needham & Company LLC restated a "hold" rating on shares of Chewy in a report on Thursday, June 11th. Citizens Jmp dropped their target price on Chewy from $45.00 to $28.00 and set a "market outperform" rating for the company in a research report on Thursday, June 11th. Piper Sandler reiterated an "overweight" rating on shares of Chewy in a research note on Friday, August 21st. Finally, Bank of America lowered their price objective on shares of Chewy from $33.00 to $31.00 in a research note on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, Chewy has an average rating of "Moderate Buy" and an average price target of $31.32.

Chewy Trading Down 11.7%

Shares of CHWY opened at $20.54 on Thursday. The company's 50-day moving average price is $22.44 and its 200 day moving average price is $23.13. Chewy has a 12-month low of $17.40 and a 12-month high of $40.55. The firm has a market cap of $8.41 billion, a P/E ratio of 34.23, a price-to-earnings-growth ratio of 0.93 and a beta of 1.42.

Chewy (NYSE:CHWY - Get Free Report) last released its quarterly earnings results 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 for the quarter, compared to the consensus estimate of $3.32 billion. During the same period in the previous year, the firm earned $0.33 EPS. The business's revenue was up 7.3% on a year-over-year basis. Equities research analysts forecast that Chewy will post 0.8 earnings per share for the current year.

Insider Activity at Chewy

In other Chewy 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 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 of the company's stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.34% of the company's stock.

Institutional Trading of Chewy

Several institutional investors and hedge funds have recently made changes to their positions in the company. Tidal Investments LLC grew its stake in Chewy by 30.2% during the 2nd quarter. Tidal Investments LLC now owns 132,549 shares of the company's stock worth $2,605,000 after buying an additional 30,729 shares during the last quarter. IFP Advisors Inc boosted its holdings in shares of Chewy by 4.0% in the second quarter. IFP Advisors Inc now owns 13,307 shares of the company's stock valued at $261,000 after acquiring an additional 509 shares during the period. Nykredit A S purchased a new position in shares of Chewy during the second quarter worth approximately $144,000. Corient Private Wealth LP grew its position in shares of Chewy by 4.6% during the second quarter. Corient Private Wealth LP now owns 94,239 shares of the company's stock worth $1,851,000 after acquiring an additional 4,183 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Chewy during the second quarter worth approximately $293,000. 93.09% of the stock is owned by hedge funds and other 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.

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.

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