Chewy (NYSE:CHWY) Given New $43.00 Price Target at UBS Group

Key Points

• UBS Group has lowered its price target for Chewy (NYSE:CHWY) from $46.00 to $43.00, maintaining a "neutral" rating on the stock, which suggests a potential upside of 19.79%.
• Chewy's latest quarterly earnings report showed an EPS of $0.14, falling short of the expected $0.33, despite revenue growing by 8.6% year-over-year to $3.10 billion.
• Insider selling trends indicate substantial transactions, including CEO Sumit Singh selling over 4,264 shares, which reflects a decrease in their ownership stake in the company.

Chewy (NYSE:CHWY - Get Free Report) had its price objective reduced by analysts at UBS Group from $46.00 to $43.00 in a report released on Thursday,Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's price target would suggest a potential upside of 19.79% from the stock's previous close.

A number of other equities analysts have also weighed in on CHWY. Wall Street Zen cut Chewy from a "buy" rating to a "hold" rating in a report on Saturday, June 14th. Guggenheim reissued a "buy" rating and issued a $45.00 price target (up from $42.00) on shares of Chewy in a research note on Thursday, June 12th. Morgan Stanley reduced their price target on shares of Chewy from $50.00 to $48.00 and set an "overweight" rating on the stock in a research note on Thursday. Citigroup reduced their price target on shares of Chewy from $49.00 to $48.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, JPMorgan Chase & Co. reduced their price target on shares of Chewy from $47.00 to $45.00 and set an "overweight" rating on the stock in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $45.72.

Chewy Stock Performance

Shares of CHWY traded up $0.79 during trading hours on Thursday, hitting $35.90. 6,059,532 shares of the stock were exchanged, compared to its average volume of 6,496,577. Chewy has a 12-month low of $26.28 and a 12-month high of $48.62. The company has a market cap of $14.90 billion, a price-to-earnings ratio of 40.39, a price-to-earnings-growth ratio of 8.81 and a beta of 1.65. The stock's 50-day moving average price is $38.71 and its two-hundred day moving average price is $38.28.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings results on Wednesday, September 10th. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.33 by ($0.19). The firm had revenue of $3.10 billion for the quarter, compared to analysts' expectations of $3.08 billion. Chewy had a return on equity of 35.04% and a net margin of 3.21%.The firm's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.24 earnings per share. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, research analysts expect that Chewy will post 0.24 earnings per share for the current year.

Insider Buying and Selling

In other Chewy news, CEO Sumit Singh sold 4,264 shares of the company's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $151,670.48. Following the sale, the chief executive officer owned 72,549 shares in the company, valued at $2,580,567.93. This represents a 5.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the company's stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $41.75, for a total value of $1,250,000,010.00. The disclosure for this sale can be found here. Insiders have sold 30,008,777 shares of company stock worth $1,252,444,321 in the last quarter. Company insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CHWY. Ameriprise Financial Inc. increased its holdings in shares of Chewy by 311.9% in the 4th quarter. Ameriprise Financial Inc. now owns 226,177 shares of the company's stock valued at $7,575,000 after acquiring an additional 171,273 shares during the last quarter. Jacobs Levy Equity Management Inc. acquired a new stake in shares of Chewy in the 4th quarter valued at about $2,086,000. Nomura Holdings Inc. boosted its position in shares of Chewy by 36.4% in the 4th quarter. Nomura Holdings Inc. now owns 30,793 shares of the company's stock valued at $1,031,000 after purchasing an additional 8,219 shares during the period. Man Group plc boosted its position in shares of Chewy by 210.0% in the 4th quarter. Man Group plc now owns 426,324 shares of the company's stock valued at $14,278,000 after purchasing an additional 288,787 shares during the period. Finally, Polar Asset Management Partners Inc. boosted its position in shares of Chewy by 26.5% in the 4th quarter. Polar Asset Management Partners Inc. now owns 288,733 shares of the company's stock valued at $9,670,000 after purchasing an additional 60,533 shares during the period. Hedge funds and other institutional investors own 93.09% of the company's stock.

Chewy Company Profile

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.

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