Chewy (NYSE:CHWY) Upgraded by Moffett Nathanson to "Buy" Rating

Key Points

• Chewy (NYSE:CHWY) has been upgraded by Moffett Nathanson from a "neutral" rating to a "buy" rating, with a price target of $48.00, indicating a potential upside of 28.13% from its current stock price.
• Despite reporting a quarterly earnings miss of $0.14 per share, Chewy's revenue increased to $3.10 billion, surpassing analysts' expectations, and it had a net margin of 1.22%.
• Overall, Chewy has received a consensus rating of "Moderate Buy" from analysts, with a mix of "Strong Buy," "Buy," and "Hold" ratings being assigned to the stock.

Chewy (NYSE:CHWY - Get Free Report) was upgraded by investment analysts at Moffett Nathanson from a "neutral" rating to a "buy" rating in a research report issued on Thursday,Benzinga reports. The brokerage presently has a $48.00 price target on the stock. Moffett Nathanson's price objective points to a potential upside of 28.13% from the stock's current price.

Other equities analysts have also issued reports about the company. JMP Securities reaffirmed a "market outperform" rating and set a $48.00 price target on shares of Chewy in a research note on Thursday, September 11th. Robert W. Baird cut their price objective on Chewy from $52.00 to $48.00 and set an "outperform" rating for the company in a research report on Thursday, September 11th. Barclays cut their price objective on Chewy from $50.00 to $47.00 and set an "overweight" rating for the company in a research report on Thursday, September 11th. Guggenheim reiterated a "buy" rating and set a $45.00 price objective (up previously from $42.00) on shares of Chewy in a research report on Thursday, June 12th. Finally, Wall Street Zen downgraded Chewy from a "buy" rating to a "hold" rating in a research report on Sunday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $45.84.

Chewy Price Performance

Shares of CHWY stock opened at $37.46 on Thursday. Chewy has a 12-month low of $26.28 and a 12-month high of $48.62. The firm has a market capitalization of $15.54 billion, a price-to-earnings ratio of 107.04, a price-to-earnings-growth ratio of 9.50 and a beta of 1.65. The business has a 50 day simple moving average of $38.33 and a 200 day simple moving average of $38.43.

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

Insider Buying and Selling

In related news, CTO Satish Mehta sold 8,727 shares of the stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $35.82, for a total transaction of $312,601.14. Following the completion of the sale, the chief technology officer directly owned 276,467 shares in the company, valued at approximately $9,903,047.94. This trade represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO William G. Billings sold 20,142 shares of the 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 sale, the chief accounting officer owned 29,464 shares of the company's stock, valued at approximately $1,048,034.48. This represents a 40.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 68,657 shares of company stock worth $2,444,311. Corporate insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

Hedge funds have recently bought and sold shares of the business. Parallel Advisors LLC increased its position in Chewy by 150.2% during the first quarter. Parallel Advisors LLC now owns 788 shares of the company's stock worth $26,000 after buying an additional 473 shares during the last quarter. Osterweis Capital Management Inc. acquired a new position in Chewy during the second quarter worth $30,000. Golden State Wealth Management LLC increased its position in Chewy by 104.6% during the first quarter. Golden State Wealth Management LLC now owns 941 shares of the company's stock worth $31,000 after buying an additional 481 shares during the last quarter. N.E.W. Advisory Services LLC acquired a new position in Chewy during the first quarter worth $44,000. Finally, EverSource Wealth Advisors LLC increased its position in Chewy by 412.2% during the second quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company's stock worth $46,000 after buying an additional 878 shares during the last quarter. 93.09% of the stock is owned by institutional investors and hedge funds.

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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