Chewy (NYSE:CHWY) Stock Rating Lowered by Wall Street Zen

Key Points

• Chewy has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, amidst mixed signals from other analysts regarding the stock's performance.
• The company reported earnings of $0.14 per share, missing the analysts' consensus estimate of $0.33, although revenue for the quarter was $3.10 billion, exceeding expectations.
• Insider trading activity has seen significant sales, with CEO Sumit Singh selling over 29,000 shares and major shareholder Argos Holdings selling nearly 30 million shares in recent transactions.

Wall Street Zen downgraded shares of Chewy (NYSE:CHWY - Free Report) from a buy rating to a hold rating in a report issued on Sunday.

A number of other equities research analysts have also recently commented on the company. Royal Bank Of Canada lowered their target price on Chewy from $44.00 to $43.00 and set an "outperform" rating on the stock in a research note on Thursday, September 11th. Seaport Res Ptn upgraded Chewy from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 10th. Evercore ISI set a $52.00 price objective on Chewy and gave the company an "outperform" rating in a research note on Thursday, June 12th. Cowen restated a "buy" rating on shares of Chewy in a research note on Friday, June 6th. Finally, JMP Securities restated a "market outperform" rating and issued a $48.00 price objective on shares of Chewy in a research note on Thursday, September 11th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $45.72.

Chewy Trading Up 2.9%

NYSE CHWY traded up $1.09 during mid-day trading on Friday, hitting $38.65. The company's stock had a trading volume of 3,977,555 shares, compared to its average volume of 6,678,729. Chewy has a twelve month low of $26.28 and a twelve month high of $48.62. The firm has a market capitalization of $16.03 billion, a price-to-earnings ratio of 110.48, a PEG ratio of 9.56 and a beta of 1.65. The company's 50 day simple moving average is $38.34 and its 200 day simple moving average is $38.44.

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

Insider Transactions at Chewy

In other Chewy news, CAO William G. Billings sold 20,142 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $35.57, for a total value of $716,450.94. Following the completion of the transaction, the chief accounting officer owned 29,464 shares in the company, valued at approximately $1,048,034.48. This represents a 40.60% 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. Also, CTO Satish Mehta sold 8,727 shares of the stock in a transaction on 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 transaction, 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 position. The disclosure for this sale can be found here. Insiders have sold a total of 30,008,777 shares of company stock worth $1,252,444,321 in the last ninety days. 0.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On Chewy

A number of institutional investors have recently modified their holdings of CHWY. BC Partners PE LP bought a new position in Chewy in the first quarter valued at about $7,142,402,000. Invesco Ltd. lifted its holdings in Chewy by 34.7% in the second quarter. Invesco Ltd. now owns 7,187,518 shares of the company's stock valued at $306,332,000 after acquiring an additional 1,852,531 shares during the period. State Street Corp lifted its holdings in Chewy by 75.5% in the second quarter. State Street Corp now owns 6,170,197 shares of the company's stock valued at $262,974,000 after acquiring an additional 2,654,496 shares during the period. AQR Capital Management LLC lifted its holdings in Chewy by 231.1% in the second quarter. AQR Capital Management LLC now owns 4,631,343 shares of the company's stock valued at $196,323,000 after acquiring an additional 3,232,763 shares during the period. Finally, Voya Investment Management LLC lifted its holdings in Chewy by 8.2% in the first quarter. Voya Investment Management LLC now owns 4,146,973 shares of the company's stock valued at $134,818,000 after acquiring an additional 312,795 shares during the period. 93.09% of the stock is owned by hedge funds and other institutional investors.

About Chewy

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.