Chewy (NYSE:CHWY) Reaches New 1-Year Low - Should You Sell?

Key Points

• Chewy shares hit a new 52-week low, falling to as low as $18.16 and ending down 5.6% on the day. The stock is well below its 50-day and 200-day moving averages, reflecting continued weakness.
• Despite the stock decline, Chewy recently posted better-than-expected quarterly results, with EPS of $0.43 versus $0.24 expected and revenue of $3.36 billion, up 9.7% year over year. The company also guided Q2 2026 EPS at $0.36.
• Analyst sentiment remains mixed but generally positive, with a consensus rating of “Moderate Buy” and an average price target of $32.05. However, several firms recently cut targets or downgraded the stock, including Zacks moving it to hold.

Chewy (NYSE:CHWY - Get Free Report) shares reached a new 52-week low during trading on Wednesday . The stock traded as low as $18.16 and last traded at $18.1940, with a volume of 5198814 shares traded. The stock had previously closed at $18.87.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Zacks Research downgraded Chewy from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. Needham & Company LLC reiterated a "hold" rating on shares of Chewy in a report on Thursday, June 11th. Morgan Stanley decreased their price target on shares of Chewy from $43.00 to $42.00 and set an "overweight" rating for the company in a research report on Thursday, June 11th. Barclays cut their price objective on shares of Chewy from $40.00 to $36.00 and set an "overweight" rating on the stock in a research report on Thursday, June 11th. Finally, Citizens Jmp decreased their target price on shares of Chewy from $45.00 to $28.00 and set a "market outperform" rating for the company in a research report on Thursday, June 11th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, Chewy presently has an average rating of "Moderate Buy" and a consensus target price of $32.05.

Chewy Trading Down 5.6%

The company has a 50-day moving average of $23.18 and a 200-day moving average of $27.21. The company has a market capitalization of $7.42 billion, a price-to-earnings ratio of 29.68, a price-to-earnings-growth ratio of 0.97 and a beta of 1.44.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.19. Chewy had a return on equity of 60.02% and a net margin of 1.99%.The business had revenue of $3.36 billion during the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter last year, the company earned $0.35 earnings per share. The company's quarterly revenue was up 9.7% on a year-over-year basis. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. On average, research analysts expect that Chewy will post 0.8 EPS for the current year.

Insider Buying and Selling

In other Chewy news, CEO Sumit Singh sold 4,220 shares of the firm's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $108,032.00. Following the completion of the transaction, the chief executive officer owned 123,955 shares of the company's stock, valued at approximately $3,173,248. This trade represents a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 Chewy stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total transaction of $219,289.59. The SEC filing for this sale provides additional information. Insiders sold a total of 95,675 shares of company stock valued at $2,459,955 over the last quarter. 0.34% of the stock is owned by company insiders.

Institutional Trading of Chewy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake 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 worth $658,367,000 after purchasing an additional 1,017,214 shares during the last quarter. Wellington Management Group LLP boosted its position in Chewy by 295.9% in the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company's stock valued at $712,841,000 after buying an additional 13,171,325 shares during the last quarter. Viking Global Investors LP boosted its position in Chewy by 146.9% in the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company's stock valued at $447,386,000 after buying an additional 8,052,955 shares during the last quarter. AQR Capital Management LLC increased its holdings in Chewy by 10.0% in the 4th quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company's stock worth $370,558,000 after buying an additional 1,022,694 shares during the period. Finally, Morgan Stanley increased its holdings in Chewy by 33.8% in the 4th quarter. Morgan Stanley now owns 7,660,258 shares of the company's stock worth $253,172,000 after buying an additional 1,937,014 shares during the period. Institutional investors and hedge funds own 93.09% of the company's stock.

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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