Bank of America Has Lowered Expectations for Chewy (NYSE:CHWY) Stock Price

Key Points

• Bank of America cut its price target on Chewy from $33 to $31, though that still implies meaningful upside from the previous close.
• Chewy’s latest quarterly results beat expectations, with EPS of $0.43 versus the $0.24 consensus and revenue of $3.36 billion, up 9.7% year over year.
• Despite the earnings beat, the stock has been weak and was down about 5.7%, with investors focused on cautious guidance and a more challenged consumer backdrop.

Chewy (NYSE:CHWY - Get Free Report) had its target price reduced by analysts at Bank of America from $33.00 to $31.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. Bank of America's target price suggests a potential upside of 64.56% from the company's previous close.

CHWY has been the topic of a number of other reports. Barclays set a $36.00 target price on Chewy and gave the company an "overweight" rating in a research note on Thursday. Guggenheim reaffirmed a "buy" rating and issued a $45.00 target price on shares of Chewy in a report on Monday, April 27th. JPMorgan Chase & Co. cut their price target on shares of Chewy from $40.00 to $35.00 and set an "overweight" rating for the company in a report on Tuesday, June 2nd. Wall Street Zen downgraded Chewy from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, TD Cowen increased their price objective on Chewy from $39.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Chewy currently has a consensus rating of "Moderate Buy" and a consensus price target of $35.86.

Chewy Stock Down 5.7%

Shares of NYSE:CHWY opened at $18.84 on Thursday. Chewy has a fifty-two week low of $19.08 and a fifty-two week high of $43.84. The firm's 50 day moving average price is $23.80 and its 200 day moving average price is $27.62. The stock has a market cap of $7.85 billion, a price-to-earnings ratio of 36.45, a price-to-earnings-growth ratio of 0.91 and a beta of 1.44.

Chewy (NYSE:CHWY - Get Free Report) last released its quarterly earnings data on Wednesday, June 10th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.19. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The company had revenue of $3.36 billion for the quarter, compared to analysts' expectations of $3.35 billion. During the same quarter last year, the company earned $0.35 earnings per share. The firm's revenue for the quarter was up 9.7% on a year-over-year basis. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. On average, equities analysts anticipate that Chewy will post 0.87 EPS for the current year.

Insider Buying and Selling

In related news, General Counsel Da-Wai Hu sold 8,149 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total value of $219,289.59. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Sumit Singh sold 4,220 shares of the company's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $108,032.00. Following the sale, the chief executive officer owned 123,955 shares in the company, valued at $3,173,248. The trade was a 3.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 95,675 shares of company stock valued at $2,459,955. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On Chewy

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in Chewy by 5.4% in the 4th quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company's stock valued at $658,367,000 after purchasing an additional 1,017,214 shares during the last quarter. WINTON GROUP Ltd raised its holdings in shares of Chewy by 110.6% during the third quarter. WINTON GROUP Ltd now owns 239,800 shares of the company's stock valued at $9,700,000 after buying an additional 125,943 shares during the last quarter. Intech Investment Management LLC boosted its position in shares of Chewy by 218.6% during the third quarter. Intech Investment Management LLC now owns 173,300 shares of the company's stock worth $7,010,000 after buying an additional 118,903 shares during the period. Champlain Investment Partners LLC bought a new position in Chewy in the 3rd quarter worth approximately $89,022,000. Finally, Jefferies Financial Group Inc. grew its holdings in Chewy by 550.3% in the 4th quarter. Jefferies Financial Group Inc. now owns 102,249 shares of the company's stock worth $3,379,000 after buying an additional 86,526 shares in the last quarter. Institutional investors own 93.09% of the company's stock.

Trending Headlines about Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported Q1 net sales of $3.36 billion, up 7.7% year over year, with adjusted EPS of $0.43 topping expectations and gross margin expanding to 30.1%, showing the business remains profitable and resilient.
• Positive Sentiment: Several analysts stayed constructive, including William Blair, J.P. Morgan, Raymond James, and Evercore, citing margin discipline, cash flow, and long-term growth drivers. Article Title
• Neutral Sentiment: Chewy outlined fiscal 2026 net sales of $13.40 billion to $13.55 billion and said it is targeting net leverage below 2x adjusted EBITDA, reinforcing a focus on balance-sheet discipline. Article Title
• Neutral Sentiment: Robert W. Baird lowered its price target to $30 from $40 while keeping an outperform rating, and Needham reiterated a Hold, reflecting a mixed but not uniformly bearish analyst response. Article Title
• Negative Sentiment: Management cut its full-year sales forecast and flagged a more cautious consumer environment, which is the main reason investors are selling the stock despite the earnings beat.
• Negative Sentiment: Commentary around the report also noted macroeconomic pressure and growth concerns, with shares hitting 52-week lows as Wall Street worries about demand for discretionary pet spending. Article Title

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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