Chewy (NYSE:CHWY) Sets New 1-Year Low - Here's Why

Key Points

• Chewy shares hit a new 52-week low, falling as low as $19.08 intraday amid recent pressure on the stock.
• The company’s Q1 results were solid, with adjusted EPS of $0.43 matching estimates and revenue of $3.36 billion slightly topping expectations, while gross margin improved.
• Despite the earnings beat, Chewy reduced its full-year sales outlook to $13.4 billion-$13.55 billion and issued slightly cautious Q2 guidance, contributing to investor concern about demand.

Chewy (NYSE:CHWY - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $19.08 and last traded at $20.1590, with a volume of 5285161 shares traded. The stock had previously closed at $20.40.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported Q1 adjusted EPS of $0.43, matching analyst estimates, while revenue of $3.36 billion slightly beat expectations and rose 7.7% year over year. Gross margin also improved, which supports the view that profitability is still trending in the right direction. Article Title
• Positive Sentiment: Several reports noted that the stock moved higher after the print, as investors focused on the beat and signs that Chewy continues to grow revenue and improve margins despite a tough consumer backdrop. Article Title
• Neutral Sentiment: Management updated Q2 guidance to EPS of $0.36 and revenue of about $3.3 billion, both slightly below consensus, which points to near-term caution but not a major surprise. Article Title
• Negative Sentiment: Chewy also cut its full-year sales outlook to $13.4 billion-$13.55 billion from $13.6 billion-$13.75 billion, raising concerns that demand may be softer than previously expected. Article Title

Analysts Set New Price Targets

Several research firms have recently issued reports on CHWY. Barclays dropped their price objective on shares of Chewy from $48.00 to $40.00 and set an "overweight" rating on the stock in a report on Tuesday, May 26th. The Goldman Sachs Group dropped their price objective on shares of Chewy from $52.00 to $46.00 and set a "buy" rating on the stock in a report on Thursday, March 26th. Argus upgraded shares of Chewy to a "strong-buy" rating in a report on Tuesday, April 7th. Wall Street Zen downgraded shares of Chewy from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Mizuho dropped their price objective on shares of Chewy from $50.00 to $40.00 and set an "outperform" rating on the stock in a report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $41.24.

Chewy Price Performance

The firm has a market cap of $8.26 billion, a P/E ratio of 37.93, a PEG ratio of 0.89 and a beta of 1.44. The stock's 50 day moving average is $23.91 and its two-hundred day moving average is $27.71.

Chewy (NYSE:CHWY - Get Free Report) last posted its earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share for the quarter, meeting analysts' consensus estimates of $0.43. The business had revenue of $3.36 billion for the quarter, compared to analysts' expectations of $3.35 billion. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm's revenue for the quarter was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.35 earnings per share. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. As a group, research analysts forecast that Chewy will post 0.87 EPS for the current fiscal year.

Insider Transactions at Chewy

In related news, CEO Sumit Singh sold 4,220 shares of the company's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $108,032.00. Following the sale, the chief executive officer owned 123,955 shares of the company's stock, valued at $3,173,248. The trade was a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available 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 dated Wednesday, April 1st. The shares were 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. In the last three months, insiders sold 95,675 shares of company stock worth $2,459,955. 0.34% of the stock is currently owned by insiders.

Institutional Trading of Chewy

Several large investors have recently added to or reduced their stakes in CHWY. Wellington Management Group LLP grew its stake in Chewy by 295.9% during the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company's stock worth $712,841,000 after buying an additional 13,171,325 shares during the last quarter. Viking Global Investors LP grew its stake in Chewy by 146.9% during the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company's stock worth $447,386,000 after buying an additional 8,052,955 shares during the last quarter. AQR Capital Management LLC grew its stake in Chewy by 120.2% during the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company's stock worth $407,948,000 after buying an additional 5,564,803 shares during the last quarter. Norges Bank bought a new stake in Chewy during the fourth quarter worth about $154,647,000. Finally, State Street Corp grew its stake in Chewy by 75.5% during the second quarter. State Street Corp now owns 6,170,197 shares of the company's stock worth $262,974,000 after buying an additional 2,654,496 shares during the last quarter. 93.09% of the stock is owned by 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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