Chewy (NYSE:CHWY) Hits New 1-Year Low - Here's What Happened

Key Points

• Chewy shares hit a new 52-week low of $22.55 on heavy volume after reporting a quarterly EPS of $0.09 versus a $0.28 consensus, with revenue essentially flat and the stock trading below its 50‑ and 200‑day moving averages.
• Analysts are mixed: MarketBeat shows a Moderate Buy consensus with a $42.91 average price target, but several firms (including UBS and Morgan Stanley) have recently trimmed targets or ratings.
• Insider selling has been notable — CEO Sumit Singh sold 83,306 shares under a pre-arranged 10b5‑1 plan to cover taxes, and insiders sold about 95,675 shares (~$2.46M) over the past three months, leaving insiders with 0.43% ownership.

Chewy (NYSE:CHWY - Get Free Report) shares hit a new 52-week low during trading on Friday . The stock traded as low as $22.55 and last traded at $22.5250, with a volume of 3669225 shares traded. The stock had previously closed at $23.67.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. UBS Group decreased their price target on shares of Chewy from $42.00 to $32.00 and set a "neutral" rating for the company in a report on Thursday, March 26th. Zacks Research upgraded shares of Chewy from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 16th. Morgan Stanley reduced their target price on shares of Chewy from $50.00 to $49.00 and set an "overweight" rating for the company in a research note on Tuesday, March 31st. Weiss Ratings reiterated a "hold (c)" rating on shares of Chewy in a research note on Monday, April 20th. Finally, Royal Bank Of Canada lifted their target price on shares of Chewy from $43.00 to $47.00 and gave the company an "outperform" rating in a research note on Monday, March 30th. Two research 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 company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $42.91.

Chewy Price Performance

The stock has a market capitalization of $9.45 billion, a price-to-earnings ratio of 43.66, a PEG ratio of 1.07 and a beta of 1.50. The stock's 50 day simple moving average is $25.91 and its 200-day simple 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 analysts' consensus estimates of $0.28 by ($0.19). Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm had revenue of $3.26 billion during the quarter, compared to the consensus estimate of $3.26 billion. During the same period in the prior year, the business earned $0.28 EPS. The company's revenue for the quarter was up .5% compared to the same quarter last year. As a group, equities research analysts anticipate that Chewy will post 0.89 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Sumit Singh sold 83,306 shares of Chewy stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $2,132,633.60. Following the transaction, the chief executive officer owned 874,061 shares of the company's stock, valued at $22,375,961.60. This trade represents a 8.70% decrease in their ownership of the stock. The transaction 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 transaction of $219,289.59. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 95,675 shares of company stock worth $2,459,955. Insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

A number of institutional investors have recently modified their holdings of CHWY. Royal Bank of Canada increased its position in Chewy by 2.5% during the first quarter. Royal Bank of Canada now owns 220,509 shares of the company's stock worth $7,168,000 after acquiring an additional 5,466 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Chewy during the first quarter worth $510,000. NewEdge Advisors LLC increased its position in Chewy by 5,238.3% during the first quarter. NewEdge Advisors LLC now owns 32,510 shares of the company's stock worth $1,057,000 after acquiring an additional 31,901 shares during the period. Goldman Sachs Group Inc. increased its position in Chewy by 1.5% during the first quarter. Goldman Sachs Group Inc. now owns 1,176,138 shares of the company's stock worth $38,236,000 after acquiring an additional 17,788 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Chewy by 31.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 383,966 shares of the company's stock worth $12,483,000 after acquiring an additional 92,129 shares during the period. Institutional investors own 93.09% of the company's stock.

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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