Chewy (NYSE:CHWY) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Chewy from a “strong-buy” to a “hold,” adding to a generally mixed but still mostly positive analyst backdrop for the stock.
• Wall Street remains broadly constructive overall, with Chewy carrying an average “Moderate Buy” rating and a consensus price target of $42.14, even as several firms trimmed their targets.
• Recent fundamentals and trading activity are under pressure: Chewy missed EPS estimates in its latest quarter, shares were trading near the lower end of their 52-week range, and CEO Sumit Singh recently sold stock under a pre-arranged trading plan.

Chewy (NYSE:CHWY - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Several other research firms have also issued reports on CHWY. Morgan Stanley lowered their price target on shares of Chewy from $49.00 to $43.00 and set an "overweight" rating on the stock in a research report on Tuesday. Weiss Ratings lowered shares of Chewy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, May 19th. Citizens Jmp dropped their target price 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. JPMorgan Chase & Co. cut their price target on Chewy from $46.00 to $40.00 and set an "overweight" rating for the company in a report on Thursday, March 26th. Finally, BNP Paribas Exane reiterated a "neutral" rating and issued a $28.00 price target (down from $38.00) on shares of Chewy in a research report on Thursday, March 26th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $42.14.

Chewy Price Performance

Shares of NYSE CHWY opened at $21.28 on Monday. The stock has a market capitalization of $8.87 billion, a PE ratio of 40.92, a P/E/G ratio of 0.90 and a beta of 1.50. Chewy has a one year low of $19.30 and a one year high of $48.62. The business's fifty day moving average price is $24.66 and its 200-day moving average price is $28.59.

Chewy (NYSE:CHWY - Get Free Report) last announced its quarterly earnings data on Wednesday, March 25th. The company reported $0.09 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.19). The firm had revenue of $3.26 billion during the quarter, compared to analysts' expectations of $3.26 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The company's revenue was up .5% compared to the same quarter last year. During the same period last year, the business posted $0.28 EPS. As a group, equities analysts expect that Chewy will post 0.89 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Sumit Singh sold 83,306 shares of Chewy stock in a transaction on Monday, May 4th. The stock was sold at an average price of $25.60, for a total transaction of $2,132,633.60. Following the completion of the sale, the chief executive officer owned 874,061 shares of the company's stock, valued at approximately $22,375,961.60. This trade represents a 8.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 95,675 shares of company stock valued at $2,459,955 over the last 90 days. Company insiders own 0.43% of the company's stock.

Institutional Trading of Chewy

A number of large investors have recently modified their holdings of the business. Osterweis Capital Management Inc. bought a new position in shares of Chewy in the second quarter worth approximately $30,000. CoreCap Advisors LLC lifted its position in Chewy by 306.3% during the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company's stock valued at $28,000 after purchasing an additional 637 shares during the last quarter. Los Angeles Capital Management LLC purchased a new position in Chewy in the 4th quarter worth approximately $31,000. Harbour Investments Inc. increased its holdings in shares of Chewy by 81.4% in the 4th quarter. Harbour Investments Inc. now owns 907 shares of the company's stock worth $30,000 after buying an additional 407 shares during the last quarter. Finally, Modus Advisors LLC bought a new position in shares of Chewy in the 4th quarter worth $34,000. Institutional investors own 93.09% of the company's stock.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Analysts and commentary highlighted Chewy’s strong Autoship business, AI initiatives, and veterinary expansion, which could support longer-term growth. Chewy vs. Petco: Which Pet-Care Stock Looks Better Positioned?
• Positive Sentiment: Chewy’s debt-free balance sheet, record free cash flow, and rising liquidity were cited as giving the company flexibility to fund growth investments and share buybacks. Chewy's Capital Strength Provides Flexibility for Growth Investments
• Positive Sentiment: Wall Street analysts remain broadly constructive on Chewy, with coverage suggesting the stock still has meaningful upside from current levels. Is Chewy (CHWY) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Chewy outperformed the broader market in the latest session, but the move appeared tied more to general trading momentum and analyst sentiment than to a new company-specific catalyst. Chewy (CHWY) Beats Stock Market Upswing: What Investors Need to Know
• Negative Sentiment: Morgan Stanley said Chewy may need to lower the high end of its full-year sales guidance because of weakening pet industry trends, which is the main bearish takeaway for investors today. Chewy Likely to Lower High End of Sales Guidance Amid Weakening Pet Industry Trends, Morgan Stanley Says
• Negative Sentiment: Morgan Stanley also trimmed its price target on Chewy from $49 to $43, signaling slightly less confidence in near-term upside even while keeping an overweight rating. Morgan Stanley price target cut

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.