Chewy (NYSE:CHWY) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Chewy has a consensus analyst rating of “Moderate Buy”, with 17 buy ratings, 2 strong buy ratings, and 6 hold ratings among 25 analysts covering the stock. The average 12-month price target is about $32.05.
• The company recently reported better-than-expected quarterly earnings, posting $0.43 EPS versus $0.24 expected, while revenue of $3.36 billion also slightly topped estimates. Revenue rose 9.7% year over year, and Chewy kept its profitability guidance intact.
• Despite some analysts trimming price targets, major firms such as Morgan Stanley, Barclays, and Wedbush still maintained bullish ratings, and recent commentary highlighted continued strength in Chewy’s Autoship subscription business. Institutional ownership remains high, with hedge funds and other institutions holding 93.09% of the stock.

Shares of Chewy (NYSE:CHWY - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-five analysts that are currently covering the firm, MarketBeat.com reports. Six research analysts have rated the stock with a hold recommendation, seventeen have issued a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $32.0476.

Several equities research analysts have commented on CHWY shares. Morgan Stanley cut their price objective on Chewy from $43.00 to $42.00 and set an "overweight" rating for the company in a research note on Thursday. Barclays dropped their price target on Chewy from $40.00 to $36.00 and set an "overweight" rating for the company in a research report on Thursday. Jefferies Financial Group restated a "hold" rating and issued a $23.00 price target on shares of Chewy in a research report on Thursday. Piper Sandler set a $30.00 price target on Chewy in a research report on Wednesday. Finally, Wedbush dropped their price target on Chewy from $42.00 to $36.00 and set an "outperform" rating for the company in a research report on Thursday, March 26th.

Chewy Trading Up 2.8%

NYSE:CHWY opened at $19.30 on Friday. Chewy has a 12 month low of $18.22 and a 12 month high of $43.84. The stock has a 50 day moving average of $23.48 and a two-hundred day moving average of $27.46. The firm has a market cap of $8.04 billion, a P/E ratio of 32.16, a price-to-earnings-growth ratio of 0.90 and a beta of 1.44.

Chewy (NYSE:CHWY - Get Free Report) last posted its quarterly earnings data on Wednesday, June 10th. The company reported $0.43 EPS 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 company had revenue of $3.36 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same period in the previous year, the business earned $0.35 EPS. Chewy'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 forecast that Chewy will post 0.84 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Sumit Singh sold 4,220 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $25.60, for a total value of $108,032.00. Following the completion of the sale, the chief executive officer directly owned 123,955 shares in the company, valued at $3,173,248. This represents a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. The SEC filing for this sale provides additional information. Insiders sold 95,675 shares of company stock valued at $2,459,955 over the last 90 days. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On Chewy

Large investors have recently made changes to their positions in the stock. Wellington Management Group LLP grew 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 worth $712,841,000 after acquiring an additional 13,171,325 shares during the period. Viking Global Investors LP grew 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 worth $447,386,000 after acquiring an additional 8,052,955 shares during the period. AQR Capital Management LLC grew its position in Chewy by 120.2% in the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company's stock worth $407,948,000 after acquiring an additional 5,564,803 shares during the period. Norges Bank purchased a new position in Chewy in the fourth quarter worth approximately $154,647,000. Finally, State Street Corp grew its position in Chewy by 75.5% in the second quarter. State Street Corp now owns 6,170,197 shares of the company's stock worth $262,974,000 after acquiring an additional 2,654,496 shares during the period. 93.09% of the stock is currently owned by hedge funds and other institutional investors.

Key Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy’s Autoship subscription program continued to grow faster than overall sales in Q1, supporting recurring revenue, customer retention, and visibility into future cash flow. Chewy's Autoship Business Continues to Drive Recurring Revenue Growth
• Positive Sentiment: Several analysts still see upside despite trimming price targets, and Citi reiterated a Buy rating while saying valuation has compressed enough to leave room for recovery. Chewy: Buy Rating Reiterated as Analyst Cuts Price Target to $31 but Sees Significant Upside from Compressed Valuation
• Positive Sentiment: Chewy’s Q1 results showed revenue growth and margin expansion, and management kept profitability guidance intact even as it lowered the sales outlook. Chewy Q1 Earnings Meet Estimates, Sales Beat on Autoship Strength

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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