Chewy's (CHWY) Buy Rating Reiterated at Guggenheim

Key Points

• Guggenheim reiterated a Buy rating on Chewy with a $45 price target, implying about a 72.9% upside from the current share price.
• Chewy missed quarterly EPS (reported $0.09 vs. $0.28 expected) while revenue was roughly in line and grew just 0.5% year-over-year; shares trade around $26 with a market cap of $10.85B and a P/E near 50.
• Corporate insiders have recently sold shares (CTO and General Counsel), institutional ownership stands at about 93%, and analysts maintain a consensus Moderate Buy with an average price target of $42.91.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Guggenheim in a research note issued to investors on Monday,Benzinga reports. They currently have a $45.00 price target on the stock. Guggenheim's price objective suggests a potential upside of 72.87% from the company's current price.

Several other equities analysts have also recently commented on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Chewy in a research note on Monday, April 20th. Argus upgraded shares of Chewy to a "strong-buy" rating in a report on Tuesday, April 7th. Wolfe Research set a $44.00 price objective on shares of Chewy in a research report on Monday, January 5th. Morgan Stanley reduced their target price on shares of Chewy from $50.00 to $49.00 and set an "overweight" rating for the company in a research note on Tuesday, March 31st. Finally, Bank of America lowered their price target on Chewy from $46.00 to $40.00 and set a "buy" rating on the stock in a research note on Thursday, March 26th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $42.91.

Chewy Stock Up 0.0%

Shares of NYSE:CHWY opened at $26.03 on Monday. The company has a market cap of $10.85 billion, a price-to-earnings ratio of 50.06, a PEG ratio of 1.13 and a beta of 1.61. The business has a 50 day moving average price of $25.91 and a 200 day moving average price of $30.48. Chewy has a twelve month low of $22.74 and a twelve month high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings results on Wednesday, March 25th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.19). The business had revenue of $3.26 billion during the quarter, compared to the consensus estimate of $3.26 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The business's quarterly revenue was up .5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.28 earnings per share. Analysts anticipate that Chewy will post 0.89 EPS for the current year.

Insider Buying and Selling

In other news, CTO Satish Mehta sold 13,013 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $28.99, for a total value of $377,246.87. Following the completion of the transaction, the chief technology officer directly owned 273,835 shares of the company's stock, valued at approximately $7,938,476.65. This represents a 4.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, General Counsel Da-Wai Hu sold 8,149 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. The SEC filing for this sale provides additional information. Corporate insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

Several institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its holdings in shares of Chewy by 2.5% during the first quarter. Royal Bank of Canada now owns 220,509 shares of the company's stock worth $7,168,000 after buying an additional 5,466 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Chewy in the 1st quarter worth approximately $510,000. NewEdge Advisors LLC grew its position in Chewy by 5,238.3% during the 1st quarter. NewEdge Advisors LLC now owns 32,510 shares of the company's stock worth $1,057,000 after acquiring an additional 31,901 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Chewy by 1.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,176,138 shares of the company's stock worth $38,236,000 after acquiring an additional 17,788 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Chewy by 31.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 383,966 shares of the company's stock valued at $12,483,000 after purchasing an additional 92,129 shares in the last quarter. 93.09% of the stock is owned by institutional investors.

About Chewy

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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