Chewy (NYSE:CHWY) Stock Price Up 5.8% - Here's What Happened

Key Points

• Chewy's stock price rose 5.8% on Monday, reaching a last trade price of $36.67, despite a 31% decline in trading volume compared to its average.
• Analysts have updated their price targets for Chewy, with several lowering their estimates to $48.00 while overall consensus suggests a target price of $45.72.
• Chewy reported an earnings miss for the quarter, with an EPS of $0.14 against expectations of $0.33, while revenue increased 8.6% year-over-year to $3.10 billion.

Shares of Chewy (NYSE:CHWY - Get Free Report) shot up 5.8% during trading on Monday . The stock traded as high as $36.53 and last traded at $36.67. 4,537,435 shares were traded during mid-day trading, a decline of 31% from the average session volume of 6,564,821 shares. The stock had previously closed at $34.66.

Analysts Set New Price Targets

Several research firms have commented on CHWY. Robert W. Baird lowered their target price on shares of Chewy from $52.00 to $48.00 and set an "outperform" rating for the company in a research note on Thursday. JMP Securities reaffirmed a "market outperform" rating and issued a $48.00 target price on shares of Chewy in a research note on Thursday. TD Cowen lowered their target price on shares of Chewy from $50.00 to $48.00 and set a "buy" rating for the company in a research note on Thursday. Wall Street Zen raised shares of Chewy from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Deutsche Bank Aktiengesellschaft raised shares of Chewy from a "hold" rating to a "buy" rating and set a $45.00 target price for the company in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $45.72.

Chewy Trading Up 6.5%

The stock's 50 day moving average price is $38.47 and its 200 day moving average price is $38.33. The firm has a market cap of $15.33 billion, a PE ratio of 105.51, a P/E/G ratio of 7.25 and a beta of 1.65.

Chewy (NYSE:CHWY - Get Free Report) last issued its earnings results on Wednesday, September 10th. The company reported $0.14 EPS for the quarter, missing analysts' consensus estimates of $0.33 by ($0.19). Chewy had a net margin of 1.22% and a return on equity of 50.45%. The business had revenue of $3.10 billion during the quarter, compared to analysts' expectations of $3.08 billion. During the same period in the prior year, the business posted $0.24 EPS. The business's revenue was up 8.6% on a year-over-year basis. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. Analysts forecast that Chewy will post 0.24 earnings per share for the current year.

Insider Activity

In related news, CTO Satish Mehta sold 8,727 shares of Chewy stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $35.82, for a total transaction of $312,601.14. Following the sale, the chief technology officer owned 276,467 shares of the company's stock, valued at $9,903,047.94. The trade was a 3.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO William G. Billings sold 20,142 shares of Chewy stock in a transaction on Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $716,450.94. Following the sale, the chief accounting officer directly owned 29,464 shares in the company, valued at $1,048,034.48. This trade represents a 40.60% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 30,008,777 shares of company stock worth $1,252,444,321. Corporate insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Chewy

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Parkside Financial Bank & Trust boosted its holdings in shares of Chewy by 34.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,161 shares of the company's stock valued at $49,000 after buying an additional 298 shares during the period. Liberty One Investment Management LLC raised its position in shares of Chewy by 4.7% during the 1st quarter. Liberty One Investment Management LLC now owns 7,051 shares of the company's stock worth $229,000 after buying an additional 314 shares in the last quarter. North Star Investment Management Corp. raised its position in shares of Chewy by 26.6% during the 1st quarter. North Star Investment Management Corp. now owns 1,678 shares of the company's stock worth $55,000 after buying an additional 353 shares in the last quarter. Federated Hermes Inc. raised its position in shares of Chewy by 2.3% during the 1st quarter. Federated Hermes Inc. now owns 15,685 shares of the company's stock worth $510,000 after buying an additional 354 shares in the last quarter. Finally, Park Avenue Securities LLC raised its position in shares of Chewy by 5.3% during the 1st quarter. Park Avenue Securities LLC now owns 7,281 shares of the company's stock worth $237,000 after buying an additional 364 shares in the last quarter. Institutional investors own 93.09% of the company's stock.

Chewy Company Profile

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.

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