Chewy (NYSE:CHWY) Price Target Cut to $37.00 by Analysts at Citigroup

Key Points

• Citigroup cut its price target on Chewy from $40 to $37 while keeping a buy rating, implying about 61% upside from the prior close.
• Other analysts have also trimmed targets recently, though the stock still carries a Moderate Buy consensus with an average price target of $42.77.
• Chewy’s latest earnings missed profit expectations, and shares were trading near their 52-week low around $22.95, while insiders have also made recent stock sales.

Chewy (NYSE:CHWY - Get Free Report) had its price objective decreased by analysts at Citigroup from $40.00 to $37.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's price objective points to a potential upside of 61.26% from the stock's previous close.

Several other analysts have also recently commented on the stock. Wedbush reduced their target price on shares of Chewy from $42.00 to $36.00 and set an "outperform" rating for the company in a research note on Thursday, March 26th. Raymond James Financial upgraded shares of Chewy from a "market perform" rating to an "outperform" rating and set a $28.00 target price for the company in a research note on Thursday, February 19th. Barclays reduced their price objective on shares of Chewy from $52.00 to $48.00 and set an "overweight" rating for the company in a research note on Thursday, March 5th. Bank of America reduced their price objective on shares of Chewy from $46.00 to $40.00 and set a "buy" rating for the company in a research note on Thursday, March 26th. Finally, UBS Group reduced their price objective on shares of Chewy from $42.00 to $32.00 and set a "neutral" rating for the company in a research note on Thursday, March 26th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $42.77.

Chewy Price Performance

Shares of CHWY stock traded up $0.46 during mid-day trading on Tuesday, hitting $22.95. The stock had a trading volume of 4,405,797 shares, compared to its average volume of 8,114,263. Chewy has a fifty-two week low of $22.45 and a fifty-two week high of $48.62. The firm has a market cap of $9.56 billion, a PE ratio of 44.12, a PEG ratio of 1.00 and a beta of 1.50. The company's 50-day simple moving average is $25.75 and its 200-day simple moving average is $29.62.

Chewy (NYSE:CHWY - Get Free Report) last released its 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). Chewy had a return on equity of 53.48% and a net margin of 1.77%.The firm had revenue of $3.26 billion during the quarter, compared to analyst estimates of $3.26 billion. During the same quarter last year, the business posted $0.28 EPS. The firm's revenue was up .5% on a year-over-year basis. On average, analysts expect that Chewy will post 0.89 EPS for the current year.

Insider Activity

In related news, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Sumit Singh sold 4,220 shares of the firm's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $108,032.00. Following the transaction, the chief executive officer owned 123,955 shares of the company's stock, valued at $3,173,248. This trade represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 95,675 shares of company stock valued at $2,459,955 in the last quarter. Company insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

Several hedge funds have recently added to or reduced their stakes in the business. Winslow Asset Management Inc. acquired a new position in shares of Chewy in the third quarter valued at approximately $6,171,000. Vanguard Group Inc. raised its position in shares of Chewy by 5.4% in the fourth quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company's stock valued at $658,367,000 after buying an additional 1,017,214 shares during the last quarter. WINTON GROUP Ltd raised its position in shares of Chewy by 110.6% in the third quarter. WINTON GROUP Ltd now owns 239,800 shares of the company's stock valued at $9,700,000 after buying an additional 125,943 shares during the last quarter. Nordea Investment Management AB purchased a new stake in Chewy in the third quarter valued at approximately $6,967,000. Finally, Federated Hermes Inc. grew its holdings in Chewy by 2,715.2% in the third quarter. Federated Hermes Inc. now owns 664,079 shares of the company's stock valued at $26,862,000 after purchasing an additional 640,490 shares during the period. 93.09% of the stock is currently owned by hedge funds and other institutional investors.

Chewy Company Profile

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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