Chewy (NYSE:CHWY) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment remains positive: Chewy has a consensus rating of “Moderate Buy” from 25 brokerages, with 18 buy ratings and 2 strong buys. The average 12-month price target is about $42.77.
• Recent earnings disappointed: The company reported $0.09 EPS versus expectations of $0.28, even though revenue of $3.26 billion matched estimates. Quarterly revenue was up only 0.5% year over year.
• Shares have weakened sharply: CHWY traded near $19.62, close to its 52-week low of $19.47 and far below its 52-week high of $48.62. The article also notes a cautious consumer-spending backdrop and insider selling, both of which may be pressuring sentiment.

Chewy (NYSE:CHWY - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-five brokerages that are covering the company, MarketBeat.com reports. Five analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and two have assigned a strong buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $42.7727.

CHWY has been the topic of a number of research reports. TD Cowen raised their price target on Chewy from $39.00 to $42.00 and gave the company a "buy" rating in a research report on Thursday, March 26th. Argus upgraded Chewy to a "strong-buy" rating in a research report on Tuesday, April 7th. Citizens Jmp lowered 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. UBS Group reduced their price objective on Chewy from $42.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, March 26th. Finally, Guggenheim reaffirmed a "buy" rating and set a $45.00 price objective on shares of Chewy in a research note on Monday, April 27th.

Key Stories Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Negative Sentiment: Chewy’s investor-conference comments reportedly reflected caution on consumer spending, which could weigh on near-term sales growth and customer demand. Chewy slides nearly 8% as cautious consumer tone pressures shares at investor conference
• Negative Sentiment: The stock hit a new 52-week low, which often triggers additional technical and momentum-driven selling from traders and systematic funds. Chewy Stock Is Hit New 52-Week Low On Tuesday - Here's Why
• Neutral Sentiment: Chewy presented at J.P. Morgan’s technology, media and communications conference, keeping the stock in focus, but the transcript itself does not provide a clear new catalyst. Chewy, Inc. (CHWY) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Neutral Sentiment: Chewy was also highlighted by analysts as a GARP-style stock and as a name with premium/value mix expansion potential, but these are longer-term supportive themes rather than immediate trading catalysts. Add These 4 GARP Stocks to Your Portfolio to Receive Handsome Returns

Chewy Stock Performance

Shares of CHWY stock opened at $19.62 on Wednesday. Chewy has a 52-week low of $19.47 and a 52-week high of $48.62. The company has a market capitalization of $8.17 billion, a PE ratio of 37.72, a price-to-earnings-growth ratio of 0.94 and a beta of 1.50. The business's fifty day moving average is $25.15 and its 200 day moving average is $29.05.

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

Insider Transactions at Chewy

In other news, CEO Sumit Singh sold 83,306 shares of the firm's stock in a transaction dated 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 transaction, the chief executive officer directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, 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 the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,675 shares of company stock worth $2,459,955 over the last ninety days. Insiders own 0.43% of the company's stock.

Institutional Trading of Chewy

Large investors have recently modified their holdings of the business. Osterweis Capital Management Inc. bought a new stake in shares of Chewy in the second quarter worth about $30,000. CoreCap Advisors LLC grew its stake in shares of Chewy by 306.3% in the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company's stock worth $28,000 after purchasing an additional 637 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Chewy in the fourth quarter worth about $31,000. Harbour Investments Inc. grew its stake in shares of Chewy by 81.4% in the fourth quarter. Harbour Investments Inc. now owns 907 shares of the company's stock worth $30,000 after purchasing an additional 407 shares during the last quarter. Finally, Modus Advisors LLC bought a new stake in shares of Chewy in the fourth quarter worth about $34,000. 93.09% of the stock is owned by 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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