Chewy (NYSE:CHWY) Shares Gap Down After Analyst Downgrade

Key Points

• Chewy shares fell after Citizens JMP cut its price target from $45 to $28, even though the firm kept a Market Outperform rating. The stock opened below its prior close and traded lower in early action.
• Other analysts also trimmed targets, including Bank of America, Wedbush, Deutsche Bank, and Goldman Sachs, but the overall view remains constructive. MarketBeat shows a consensus rating of Moderate Buy with an average price target of $35.09.
• Despite the recent selloff, Chewy posted strong Q1 results, with revenue of $3.36 billion and adjusted EPS of $0.43 beating expectations. However, management cut its full-year sales outlook and flagged a more cautious consumer environment, weighing on sentiment.

Chewy (NYSE:CHWY - Get Free Report) gapped down prior to trading on Thursday after Citizens Jmp lowered their price target on the stock from $45.00 to $28.00. The stock had previously closed at $19.98, but opened at $19.11. Citizens Jmp currently has a market outperform rating on the stock. Chewy shares last traded at $19.2090, with a volume of 2,398,397 shares.

A number of other brokerages also recently issued reports on CHWY. Bank of America lowered their price target on shares of Chewy from $33.00 to $31.00 in a report on Thursday. Wedbush reduced their price objective on shares of Chewy from $42.00 to $36.00 and set an "outperform" rating for the company in a research note on Thursday, March 26th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Chewy from $45.00 to $32.00 and set a "buy" rating on the stock in a report on Thursday. Raymond James Financial reaffirmed a "buy" rating on shares of Chewy in a report on Wednesday. Finally, The Goldman Sachs Group lowered their target price on shares of Chewy from $52.00 to $46.00 and set a "buy" rating on the stock in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Chewy currently has a consensus rating of "Moderate Buy" and an average target price of $35.09.

Insider Activity

In other Chewy news, General Counsel Da-Wai Hu sold 8,149 shares of Chewy stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total transaction of $219,289.59. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sumit Singh sold 83,306 shares of Chewy stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $2,132,633.60. Following the sale, the chief executive officer owned 874,061 shares of the company's stock, valued at approximately $22,375,961.60. The trade was a 8.70% decrease in their ownership of the stock. 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 have sold 95,675 shares of company stock valued at $2,459,955 in the last three months. 0.34% of the stock is owned by insiders.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported Q1 net sales of $3.36 billion, up 7.7% year over year, with adjusted EPS of $0.43 topping expectations and gross margin expanding to 30.1%, showing the business remains profitable and resilient.
• Positive Sentiment: Several analysts stayed constructive, including William Blair, J.P. Morgan, Raymond James, and Evercore, citing margin discipline, cash flow, and long-term growth drivers. Article Title
• Neutral Sentiment: Chewy outlined fiscal 2026 net sales of $13.40 billion to $13.55 billion and said it is targeting net leverage below 2x adjusted EBITDA, reinforcing a focus on balance-sheet discipline. Article Title
• Neutral Sentiment: Robert W. Baird lowered its price target to $30 from $40 while keeping an outperform rating, and Needham reiterated a Hold, reflecting a mixed but not uniformly bearish analyst response. Article Title
• Negative Sentiment: Management cut its full-year sales forecast and flagged a more cautious consumer environment, which is the main reason investors are selling the stock despite the earnings beat.
• Negative Sentiment: Commentary around the report also noted macroeconomic pressure and growth concerns, with shares hitting 52-week lows as Wall Street worries about demand for discretionary pet spending. Article Title

Institutional Trading of Chewy

Hedge funds have recently made changes to their positions in the stock. Parallel Advisors LLC increased its stake in Chewy by 106.8% in the first quarter. Parallel Advisors LLC now owns 1,584 shares of the company's stock valued at $43,000 after acquiring an additional 818 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Chewy by 171.6% during the first quarter. NewEdge Advisors LLC now owns 18,855 shares of the company's stock worth $509,000 after purchasing an additional 11,913 shares during the last quarter. Honeycomb Asset Management LP bought a new stake in Chewy during the first quarter worth about $4,725,000. Essential Partners LLC boosted its holdings in shares of Chewy by 144.7% in the 1st quarter. Essential Partners LLC now owns 7,778 shares of the company's stock worth $210,000 after purchasing an additional 4,600 shares in the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of Chewy by 12.7% in the 1st quarter. Bank of America Corp DE now owns 4,816,924 shares of the company's stock worth $130,057,000 after purchasing an additional 542,298 shares in the last quarter. 93.09% of the stock is owned by institutional investors.

Chewy Stock Performance

The stock has a market capitalization of $7.96 billion, a P/E ratio of 36.86, a price-to-earnings-growth ratio of 0.91 and a beta of 1.44. The firm has a 50-day moving average price of $23.80 and a 200 day moving average price of $27.62.

Chewy (NYSE:CHWY - Get Free Report) last released its earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.19. The company had revenue of $3.36 billion during the quarter, compared to the consensus estimate of $3.35 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.Chewy's quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 EPS. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. On average, equities analysts anticipate that Chewy will post 0.87 earnings per share for the current fiscal year.

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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