Chewy (NYSE:CHWY) Cut to "Hold" at Wall Street Zen

Key Points

• Chewy was downgraded by Wall Street Zen from "buy" to "hold", though the broader analyst view remains positive with a consensus rating of Moderate Buy and a consensus price target of $42.91.
• The stock fell 3.2% and opened at $22.91, near its 52-week low of $22.47; it is also trading below its 50-day and 200-day moving averages.
• Chewy recently reported Q1 EPS of $0.09, well below the $0.28 consensus estimate, while revenue of $3.26 billion matched expectations and rose slightly year over year.

Chewy (NYSE:CHWY - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Other research analysts have also issued research reports about the company. Raymond James Financial raised Chewy from a "market perform" rating to an "outperform" rating and set a $28.00 price target on the stock in a research report on Thursday, February 19th. Citizens Jmp cut their price target on Chewy from $48.00 to $45.00 and set a "market outperform" rating on the stock in a research report on Thursday, March 26th. Piper Sandler reaffirmed an "overweight" rating on shares of Chewy in a research report on Thursday, February 5th. Barclays cut their price target on Chewy from $52.00 to $48.00 and set an "overweight" rating on the stock in a research report on Thursday, March 5th. Finally, The Goldman Sachs Group cut their price target on Chewy from $52.00 to $46.00 and set a "buy" rating on the stock in a research report on Thursday, March 26th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Chewy currently has a consensus rating of "Moderate Buy" and a consensus price target of $42.91.

Chewy Stock Down 3.2%

CHWY opened at $22.91 on Friday. The firm has a market cap of $9.54 billion, a price-to-earnings ratio of 44.05, a price-to-earnings-growth ratio of 1.03 and a beta of 1.50. Chewy has a 52 week low of $22.47 and a 52 week high of $48.62. The business's 50 day moving average is $25.91 and its two-hundred day moving average is $29.82.

Chewy (NYSE:CHWY - Get Free Report) last released its quarterly earnings results on Wednesday, March 25th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.19). The firm had revenue of $3.26 billion for the quarter, compared to analyst estimates of $3.26 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The company's quarterly revenue was up .5% on a year-over-year basis. During the same period last year, the firm earned $0.28 EPS. Equities analysts expect that Chewy will post 0.89 EPS for the current fiscal year.

Insider Activity at Chewy

In other Chewy news, CEO Sumit Singh sold 83,306 shares of Chewy stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $25.60, for a total value of $2,132,633.60. Following the transaction, the chief executive officer directly owned 874,061 shares in the company, valued at approximately $22,375,961.60. This trade represents a 8.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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. Also, General Counsel Da-Wai Hu sold 8,149 shares of Chewy stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. The SEC filing for this sale provides additional information. Insiders sold a total of 95,675 shares of company stock worth $2,459,955 over the last quarter. Company insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada lifted its holdings in shares of Chewy by 2.5% in the 1st quarter. Royal Bank of Canada now owns 220,509 shares of the company's stock valued at $7,168,000 after buying an additional 5,466 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of Chewy in the 1st quarter valued at approximately $510,000. NewEdge Advisors LLC increased its holdings in shares of Chewy by 5,238.3% in the 1st quarter. NewEdge Advisors LLC now owns 32,510 shares of the company's stock valued at $1,057,000 after purchasing an additional 31,901 shares in the last quarter. Goldman Sachs Group Inc. increased 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 valued at $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 increased 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 valued at $12,483,000 after purchasing an additional 92,129 shares in the last quarter. 93.09% of the stock is currently owned by hedge funds and other institutional investors.

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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