Chewy (NYSE:CHWY) Stock Rating Upgraded by Mizuho

Key Points

• Mizuho upgraded Chewy's stock rating from "neutral" to "outperform" with a new price target of $50.00, suggesting an 18.18% potential upside from its previous close.
• Analysts from other firms have also shown optimism, with Guggenheim and Barclays increasing their target prices to $45.00 and $50.00, respectively, leading to a consensus rating of "Moderate Buy."
• Chewy's recent earnings exceeded expectations, reporting $0.35 earnings per share against an estimate of $0.34, with quarterly revenue rising by 6.3% year-over-year.

Chewy (NYSE:CHWY - Get Free Report) was upgraded by analysts at Mizuho from a "neutral" rating to an "outperform" rating in a research note issued to investors on Monday, Marketbeat.com reports. The brokerage presently has a $50.00 price target on the stock, up from their previous price target of $44.00. Mizuho's target price would suggest a potential upside of 18.18% from the stock's previous close.

Several other analysts also recently commented on the company. Guggenheim reaffirmed a "buy" rating and set a $45.00 price objective (up from $42.00) on shares of Chewy in a research note on Thursday, June 12th. Barclays boosted their target price on Chewy from $44.00 to $50.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 28th. Cowen reiterated a "buy" rating on shares of Chewy in a research report on Friday, June 6th. Royal Bank Of Canada reiterated an "outperform" rating and set a $44.00 target price (up previously from $42.00) on shares of Chewy in a research report on Thursday, June 12th. Finally, UBS Group reiterated a "neutral" rating and set a $44.00 target price on shares of Chewy in a research report on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.94.

Chewy Stock Performance

Chewy stock opened at $42.31 on Monday. Chewy has a fifty-two week low of $25.21 and a fifty-two week high of $48.62. The company has a market capitalization of $17.57 billion, a P/E ratio of 47.54, a PEG ratio of 8.84 and a beta of 1.65. The stock has a 50-day simple moving average of $38.84 and a 200-day simple moving average of $38.23.

Chewy (NYSE:CHWY - Get Free Report) last posted 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. The business had revenue of $3.12 billion during the quarter, compared to the consensus estimate of $3.08 billion. Chewy had a return on equity of 35.04% and a net margin of 3.21%.The business's quarterly revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.31 EPS. Chewy has set its FY 2025 guidance at EPS. As a group, analysts forecast that Chewy will post 0.24 earnings per share for the current year.

Insider Transactions at Chewy

In related news, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $41.75, for a total value of $1,250,000,010.00. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO William G. Billings sold 20,142 shares of the business's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $35.57, for a total value of $716,450.94. Following the completion of the transaction, the chief accounting officer directly owned 29,464 shares of the company's stock, valued at approximately $1,048,034.48. This trade represents a 40.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 30,008,777 shares of company stock worth $1,252,444,321. 0.43% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Chewy

A number of institutional investors have recently made changes to their positions in the stock. Parallel Advisors LLC lifted its stake in shares of Chewy by 150.2% during the 1st quarter. Parallel Advisors LLC now owns 788 shares of the company's stock worth $26,000 after purchasing an additional 473 shares during the period. Osterweis Capital Management Inc. purchased a new position in shares of Chewy during the 2nd quarter worth $30,000. Golden State Wealth Management LLC lifted its stake in shares of Chewy by 104.6% during the 1st quarter. Golden State Wealth Management LLC now owns 941 shares of the company's stock worth $31,000 after purchasing an additional 481 shares during the period. N.E.W. Advisory Services LLC purchased a new position in shares of Chewy during the 1st quarter worth $44,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Chewy by 412.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company's stock worth $46,000 after purchasing an additional 878 shares during the period. 93.09% of the stock is owned by institutional investors and hedge funds.

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.

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