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

Chewy, Inc. (NYSE:CHWY - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $45.79, but opened at $41.65. Chewy shares last traded at $40.37, with a volume of 5,531,892 shares traded.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft set a $27.00 target price on shares of Chewy and gave the stock a "hold" rating in a research note on Monday, April 14th. Jefferies Financial Group restated a "hold" rating and issued a $43.00 price objective (up from $41.00) on shares of Chewy in a report on Thursday, June 5th. Guggenheim boosted their target price on shares of Chewy from $42.00 to $45.00 and gave the stock a "buy" rating in a research note on Thursday. Citigroup lifted their price target on Chewy from $42.00 to $49.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Needham & Company LLC reiterated a "hold" rating on shares of Chewy in a report on Thursday. Eight analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $43.72.

Chewy Price Performance

The firm has a market cap of $17.06 billion, a price-to-earnings ratio of 45.32, a P/E/G ratio of 2.21 and a beta of 1.75. The firm's 50 day moving average price is $39.44 and its two-hundred day moving average price is $36.53.

Chewy (NYSE:CHWY - Get Free Report) last announced its earnings results on Wednesday, June 11th. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.01. Chewy had a return on equity of 24.47% and a net margin of 3.51%. The company had revenue of $3.12 billion for the quarter, compared to the consensus estimate of $3.08 billion. During the same period last year, the business posted $0.31 EPS. The company's revenue was up 6.3% on a year-over-year basis. On average, analysts anticipate that Chewy, Inc. will post 0.24 earnings per share for the current year.

Insiders Place Their Bets

In other Chewy news, CFO David Reeder sold 7,863 shares of Chewy stock in a transaction that occurred on Friday, May 2nd. The stock was sold at an average price of $36.50, for a total value of $286,999.50. Following the sale, the chief financial officer now owns 11,582 shares of the company's stock, valued at approximately $422,743. The trade was a 40.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Sumit Singh sold 8,552 shares of the stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $33.35, for a total value of $285,209.20. Following the transaction, the chief executive officer now directly owns 62,096 shares of the company's stock, valued at approximately $2,070,901.60. This trade represents a 12.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 236,046 shares of company stock worth $9,387,635. 0.43% of the stock is owned by insiders.

Institutional Investors Weigh In On Chewy

Hedge funds and other institutional investors have recently bought and sold shares of the business. Yousif Capital Management LLC acquired a new stake in shares of Chewy in the fourth quarter valued at about $1,856,000. State of Alaska Department of Revenue purchased a new stake in shares of Chewy during the 4th quarter worth approximately $578,000. Wilmington Savings Fund Society FSB boosted its stake in shares of Chewy by 30.2% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 2,800 shares of the company's stock worth $94,000 after acquiring an additional 650 shares in the last quarter. Summit Trail Advisors LLC purchased a new position in Chewy in the 4th quarter valued at approximately $225,000. Finally, Louisiana State Employees Retirement System acquired a new position in Chewy during the fourth quarter worth $1,530,000. Institutional investors and hedge funds own 93.09% of the company's stock.

About Chewy

Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications.