Chewy (NYSE:CHWY) Receives Hold Rating from Needham & Company LLC

Key Points

• Needham & Company LLC reiterated its Hold rating on Chewy, while the broader analyst picture remains mixed with a consensus Moderate Buy and an average target price of $36.91.
• Chewy reported better-than-expected Q1 results, including EPS of $0.43 versus $0.24 expected and revenue of $3.36 billion, up 9.7% year over year. The company also raised attention on improving margins and continued profitability.
• Despite the earnings beat, the stock was down 1.8% and management trimmed full-year sales guidance due to softer pet spending and a more cautious consumer, which is weighing on investor sentiment.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "hold" rating reiterated by equities researchers at Needham & Company LLC in a note issued to investors on Thursday,Benzinga reports.

A number of other brokerages have also issued reports on CHWY. Robert W. Baird cut their target price on Chewy from $40.00 to $30.00 and set an "outperform" rating on the stock in a research report on Thursday. Moffett Nathanson lowered Chewy from a "buy" rating to a "neutral" rating in a research report on Wednesday. Weiss Ratings raised Chewy from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 5th. Wall Street Zen lowered Chewy from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, Morgan Stanley cut their target price on Chewy from $49.00 to $43.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 26th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Chewy presently has an average rating of "Moderate Buy" and a consensus target price of $36.91.

Chewy Stock Down 1.8%

Shares of CHWY opened at $20.03 on Thursday. The business's 50 day moving average is $23.80 and its two-hundred day moving average is $27.62. Chewy has a 52-week low of $19.08 and a 52-week high of $43.84. The firm has a market cap of $8.35 billion, a price-to-earnings ratio of 38.52, a PEG ratio of 0.91 and a beta of 1.44.

Chewy (NYSE:CHWY - Get Free Report) last announced its earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.19. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The company had revenue of $3.36 billion for the quarter, compared to analyst estimates of $3.35 billion. During the same period in the prior year, the company posted $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, equities analysts expect that Chewy will post 0.87 earnings per share for the current fiscal year.

Insider Activity at Chewy

In related 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 transaction of $108,032.00. Following the sale, the chief executive officer directly owned 123,955 shares of the company's stock, valued at approximately $3,173,248. This represents a 3.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 95,675 shares of company stock worth $2,459,955. Corporate insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On Chewy

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in 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 buying an additional 1,017,214 shares during the period. Wellington Management Group LLP lifted its position in Chewy by 295.9% in the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company's stock valued at $712,841,000 after purchasing an additional 13,171,325 shares during the last quarter. Viking Global Investors LP lifted its position in Chewy by 146.9% in the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company's stock valued at $447,386,000 after purchasing an additional 8,052,955 shares during the last quarter. AQR Capital Management LLC lifted its position in Chewy by 10.0% in the 4th quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company's stock valued at $370,558,000 after purchasing an additional 1,022,694 shares during the last quarter. Finally, Morgan Stanley lifted its position in Chewy by 33.8% in the 4th quarter. Morgan Stanley now owns 7,660,258 shares of the company's stock valued at $253,172,000 after purchasing an additional 1,937,014 shares during the last quarter. 93.09% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy posted Q1 net sales of $3.36 billion, up 7.7% year over year, and adjusted EPS of $0.43, topping estimates and reinforcing that the core business is still growing. Chewy Announces First Quarter 2026 Financial Results
• Positive Sentiment: Profitability improved, with gross margin rising to 30.1% and management signaling continued discipline on margins and free cash flow, which supports the long-term investment case. Chewy Inc (CHWY) Q1 2026 Earnings Call Highlights
• Positive Sentiment: Several analysts stayed bullish after the report, saying the results were better than feared and pointing to margin discipline and longer-term growth drivers such as veterinary services, clinics, health offerings, and AI initiatives. Chewy Maintains Buy Rating as Stronger‑Than‑Feared Results and Prudent Guidance Underscore Earnings Confidence
• Neutral Sentiment: Chewy is still expanding into higher-margin adjacent businesses, but those initiatives are early and not yet enough to offset near-term concerns about consumer pressure. CHWY Q1 Earnings Call Flags Softer Consumer Spending
• Negative Sentiment: Management trimmed full-year sales guidance, citing softer pet-related spending and a more cautious U.S. consumer, which is weighing on sentiment despite the earnings beat. Chewy Cuts FY Outlook Despite Higher Sales, Profit
• Negative Sentiment: The lowered revenue outlook and mixed analyst reaction suggest investors are worried growth may slow from here, especially after the stock’s sharp run-up in expectations ahead of earnings. Analyst Maintains Hold on Chewy Amid Macro Headwinds, Strategic Concerns, and Vet Services Expansion Upside

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.