Citigroup Has Lowered Expectations for Chewy (NYSE:CHWY) Stock Price

Key Points

• Citigroup has lowered its price target for Chewy (NYSE:CHWY) from $49.00 to $48.00, while maintaining a "buy" rating, suggesting a potential upside of 33.65% from the current price.
• In addition to Citigroup, other analysts have also reduced their price targets for Chewy, with ranges from $45.00 to $52.00, reflecting a generally cautious outlook.
• Chewy reported earnings of $0.14 per share, which fell short of analysts' expectations, despite an 8.6% year-over-year revenue increase to $3.10 billion.

Chewy (NYSE:CHWY - Get Free Report) had its price objective dropped by research analysts at Citigroup from $49.00 to $48.00 in a report issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's target price suggests a potential upside of 33.65% from the stock's current price.

CHWY has been the subject of a number of other reports. Wall Street Zen cut shares of Chewy from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. JPMorgan Chase & Co. lowered their price objective on shares of Chewy from $47.00 to $45.00 and set an "overweight" rating for the company in a research report on Thursday. Barclays lowered their price objective on shares of Chewy from $50.00 to $47.00 and set an "overweight" rating for the company in a research report on Thursday. Wedbush restated an "outperform" rating and issued a $45.00 price target on shares of Chewy in a research report on Thursday. Finally, Evercore ISI set a $52.00 price target on shares of Chewy and gave the company an "outperform" rating in a research report on Thursday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, Chewy currently has a consensus rating of "Moderate Buy" and an average target price of $45.78.

Chewy Stock Performance

Shares of Chewy stock traded up $0.81 on Thursday, reaching $35.92. 4,050,148 shares of the stock were exchanged, compared to its average volume of 6,484,818. The firm's 50 day moving average is $38.71 and its 200-day moving average is $38.28. Chewy has a one year low of $26.28 and a one year high of $48.62. The firm has a market cap of $14.91 billion, a PE ratio of 40.28, a P/E/G ratio of 8.81 and a beta of 1.65.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share 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 return on equity of 35.04% and a net margin of 3.21%.The business's revenue was up 8.6% on a year-over-year basis. During the same period last year, the company posted $0.24 EPS. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, equities research analysts expect that Chewy will post 0.24 EPS for the current fiscal year.

Insider Activity

In other news, CEO Sumit Singh sold 4,264 shares of the company's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $35.57, for a total value of $151,670.48. Following the sale, the chief executive officer directly owned 72,549 shares of the company's stock, valued at approximately $2,580,567.93. This represents a 5.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $41.75, for a total transaction of $1,250,000,010.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 30,008,777 shares of company stock valued at $1,252,444,321. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Chewy

A number of institutional investors have recently modified their holdings of the company. Parallel Advisors LLC grew its holdings in Chewy by 150.2% in the first 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. acquired a new position in shares of Chewy during the second quarter valued at about $30,000. Golden State Wealth Management LLC boosted its position 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 in the last quarter. N.E.W. Advisory Services LLC bought a new position in shares of Chewy during the 1st quarter worth about $44,000. Finally, EverSource Wealth Advisors LLC boosted its position 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 in the last quarter. 93.09% of the stock is owned by institutional investors.

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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