Chewy's (CHWY) "Hold" Rating Reiterated at Needham & Company LLC

Key Points

• Chewy's stock has been reaffirmed with a "hold" rating by Needham & Company, alongside mixed ratings from other analysts, which include "outperform" and "strong-buy" ratings.
• Chewy's recent earnings report indicated missed EPS estimates ($0.14 vs. $0.33 expected), but revenue was slightly above expectations at $3.10 billion, marking an 8.6% year-over-year growth.
• Insider sales have occurred recently, including significant sales by the CEO, who sold over 29,000 shares, indicating a 5.19% decrease in ownership, which may concern investors about insider confidence.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "hold" rating reaffirmed by research analysts at Needham & Company LLC in a research report issued on Thursday,Benzinga reports.

A number of other equities analysts also recently commented on the company. Royal Bank Of Canada reiterated an "outperform" rating and issued a $44.00 price target (up from $42.00) on shares of Chewy in a research note on Thursday, June 12th. Jefferies Financial Group reiterated a "hold" rating and issued a $43.00 price target (up from $41.00) on shares of Chewy in a research note on Thursday, June 5th. Wall Street Zen downgraded Chewy from a "buy" rating to a "hold" rating in a research note on Saturday, June 14th. Citigroup reiterated an "outperform" rating on shares of Chewy in a research note on Thursday, July 10th. Finally, Citizens Jmp upgraded Chewy to a "strong-buy" rating in a research note on Thursday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Chewy presently has an average rating of "Moderate Buy" and a consensus price target of $44.94.

Chewy Stock Performance

Shares of NYSE CHWY opened at $35.16 on Thursday. Chewy has a 1 year low of $26.28 and a 1 year high of $48.62. The firm has a market cap of $14.60 billion, a price-to-earnings ratio of 39.50, a PEG ratio of 8.81 and a beta of 1.65. The stock's 50-day simple moving average is $38.71 and its 200-day simple moving average is $38.28.

Chewy (NYSE:CHWY - Get Free Report) last announced its 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). Chewy had a return on equity of 35.04% and a net margin of 3.21%.The business had revenue of $3.10 billion for the quarter, compared to analysts' expectations of $3.08 billion. During the same period in the previous year, the firm posted $0.24 earnings per share. The firm's revenue was up 8.6% compared to the same quarter last year. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. As a group, research analysts predict that Chewy will post 0.24 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Sumit Singh sold 29,557 shares of the business's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $1,051,342.49. Following the completion of the transaction, the chief executive officer directly owned 540,406 shares in the company, valued at approximately $19,222,241.42. The trade was a 5.19% decrease in their ownership of the stock. The sale 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 the business's stock in a transaction that occurred 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 transaction, 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. In the last ninety days, insiders have sold 30,008,777 shares of company stock valued at $1,252,444,321. Corporate insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Chewy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Aigen Investment Management LP bought a new stake in Chewy during the first quarter worth approximately $791,000. Jefferies Financial Group Inc. bought a new stake in Chewy during the first quarter worth approximately $3,251,000. D.A. Davidson & CO. increased its holdings in shares of Chewy by 38.7% in the first quarter. D.A. Davidson & CO. now owns 43,725 shares of the company's stock valued at $1,422,000 after buying an additional 12,206 shares in the last quarter. Polar Asset Management Partners Inc. increased its holdings in shares of Chewy by 26.5% in the fourth quarter. Polar Asset Management Partners Inc. now owns 288,733 shares of the company's stock valued at $9,670,000 after buying an additional 60,533 shares in the last quarter. Finally, Victory Capital Management Inc. increased its holdings in shares of Chewy by 74.5% in the first quarter. Victory Capital Management Inc. now owns 139,889 shares of the company's stock valued at $4,548,000 after buying an additional 59,711 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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