Chewy (NYSE:CHWY) Shares Down 8.7% - Here's What Happened

Key Points

• Chewy shares fell 8.7% on Tuesday, trading as low as $20.03 after closing at $21.63 the prior day, with volume slightly below average.
• Investor sentiment turned more cautious after the company’s conference appearance, where management struck a softer tone on consumer spending and near-term demand growth, contributing to concerns about slower order trends.
• Chewy also hit a new 52-week low, while analysts continue to watch the stock ahead of its June earnings report; sentiment remains mixed despite a consensus Moderate Buy rating and average target price of $42.77.

Chewy (NYSE:CHWY - Get Free Report)'s share price was down 8.7% during trading on Tuesday . The company traded as low as $20.03 and last traded at $19.7490. Approximately 7,775,030 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 8,136,091 shares. The stock had previously closed at $21.63.

More Chewy News

Here are the key news stories impacting Chewy this week:

• Negative Sentiment: Chewy’s conference appearance highlighted a more cautious tone on consumer spending, raising concerns that demand trends and order growth could soften in the near term. Chewy slides nearly 8% as cautious consumer tone pressures shares at investor conference
• Negative Sentiment: The stock also hit a new 52-week low, which can trigger additional technical selling and risk reduction from momentum-oriented traders. Chewy Stock Is Hit New 52-Week Low On Tuesday - Here's Why
• Negative Sentiment: Recent analyst discussion remains in focus, with Citigroup among the firms referenced as investors reassess the outlook ahead of Chewy’s next earnings report in June. Chewy Stock Is Hit New 52-Week Low On Tuesday - Here's Why
• Neutral Sentiment: Chewy presented at the J.P. Morgan 54th Annual Global Technology, Media and Communications Conference, keeping management commentary and the company’s outlook in the spotlight. Chewy, Inc. (CHWY) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Neutral Sentiment: Chewy continues to be highlighted by some strategists as a GARP name and as a company expanding its premium/value product mix, which supports the longer-term investment case. Add These 4 GARP Stocks to Your Portfolio to Receive Handsome Returns
• Positive Sentiment: Analyst and strategic commentary around Chewy’s premium-and-value mix suggests the company is trying to broaden its addressable market and improve margins over time. Chewy's Premium & Value Mix Strategy Expands Its Addressable Market

Analyst Ratings Changes

A number of equities research analysts have commented on CHWY shares. Citigroup reduced their target price on Chewy from $40.00 to $37.00 and set a "buy" rating for the company in a report on Tuesday, May 12th. Raymond James Financial raised Chewy from a "market perform" rating to an "outperform" rating and set a $28.00 price target for the company in a research note on Thursday, February 19th. Bank of America cut their price target on Chewy from $46.00 to $40.00 and set a "buy" rating for the company in a research note on Thursday, March 26th. Barclays cut their price target on Chewy from $52.00 to $48.00 and set an "overweight" rating for the company in a research note on Thursday, March 5th. Finally, Royal Bank Of Canada lifted their price target on Chewy from $43.00 to $47.00 and gave the stock an "outperform" rating in a research note on Monday, March 30th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $42.77.

Chewy Stock Performance

The stock has a market cap of $8.27 billion, a PE ratio of 38.14, a PEG ratio of 0.92 and a beta of 1.50. The business has a 50-day moving average of $25.27 and a 200 day moving average of $29.15.

Chewy (NYSE:CHWY - Get Free Report) last posted its quarterly earnings data on Wednesday, March 25th. The company reported $0.09 EPS for the quarter, missing analysts' consensus estimates of $0.28 by ($0.19). The company had revenue of $3.26 billion for the quarter, compared to analysts' expectations of $3.26 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The company's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.28 EPS. Equities analysts expect that Chewy will post 0.89 EPS for the current fiscal year.

Insider Activity

In other news, General Counsel Da-Wai Hu sold 8,149 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total transaction of $219,289.59. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 transaction, the chief executive officer 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 SEC filing for this sale provides additional information. 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 a total of 95,675 shares of company stock valued at $2,459,955 in the last 90 days. 0.43% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Bank of America Corp DE boosted its stake in Chewy by 12.7% during the first quarter. Bank of America Corp DE now owns 4,816,924 shares of the company's stock valued at $130,057,000 after buying an additional 542,298 shares in the last quarter. Bull Harbor Capital LLC purchased a new stake in Chewy in the 1st quarter worth about $398,000. Encore Global Management LP purchased a new stake in Chewy in the 1st quarter worth about $3,010,000. Amundi lifted its stake in Chewy by 191.8% in the 1st quarter. Amundi now owns 1,466,126 shares of the company's stock worth $39,584,000 after acquiring an additional 963,750 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Chewy by 16.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 6,216 shares of the company's stock worth $168,000 after acquiring an additional 863 shares in the last quarter. Institutional investors 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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