Deutsche Bank Aktiengesellschaft Upgrades Chewy (NYSE:CHWY) to "Buy"

Key Points

• Deutsche Bank Aktiengesellschaft has upgraded Chewy (NYSE:CHWY) from a "hold" rating to a "buy" rating, setting a price target of $45.00 which indicates a potential upside of 28% from its previous close.
• Chewy's earnings report revealed a quarterly EPS of $0.14, which missed the consensus estimate of $0.33, although the company's revenue increased by 8.6% year-over-year to $3.10 billion.
• Institutional investors now own approximately 93.09% of Chewy's stock, indicating strong institutional interest in the company.

Chewy (NYSE:CHWY - Get Free Report) was upgraded by research analysts at Deutsche Bank Aktiengesellschaft from a "hold" rating to a "buy" rating in a research note issued on Thursday,Benzinga reports. The brokerage presently has a $45.00 price objective on the stock. Deutsche Bank Aktiengesellschaft's target price points to a potential upside of 28.00% from the company's previous close.

Several other research firms have also weighed in on CHWY. Evercore ISI set a $52.00 target price on Chewy and gave the company an "outperform" rating in a research note on Thursday, June 12th. Barclays increased their price target on Chewy from $44.00 to $50.00 and gave the stock an "overweight" rating in a report on Wednesday, May 28th. Citizens Jmp upgraded Chewy to a "strong-buy" rating in a report on Thursday, July 10th. Jefferies Financial Group restated a "hold" rating and issued a $43.00 price target (up from $41.00) on shares of Chewy in a report on Thursday, June 5th. Finally, Morgan Stanley restated an "overweight" rating and issued a $50.00 price target (up from $39.00) on shares of Chewy in a report on Thursday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $44.94.

Chewy Trading Down 16.5%

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 business's 50-day moving average price is $38.71 and its two-hundred day moving average price is $38.28. The firm has a market capitalization of $14.60 billion, a price-to-earnings ratio of 39.50, a PEG ratio of 8.81 and a beta of 1.65.

Chewy (NYSE:CHWY - Get Free Report) last released its earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.33 by ($0.19). Chewy had a net margin of 3.21% and a return on equity of 35.04%. The company had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.08 billion. During the same period in the previous year, the company posted $0.24 EPS. The company's quarterly 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. Sell-side analysts predict that Chewy will post 0.24 earnings per share for the current year.

Insider Transactions at Chewy

In related news, CEO Sumit Singh sold 29,557 shares of the stock in a transaction dated 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. This trade represents a 5.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the stock in a transaction dated 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 disclosure for this sale can be found here. Insiders have sold a total of 30,008,777 shares of company stock valued at $1,252,444,321 in the last ninety days. Corporate insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Centaurus Financial Inc. bought a new position in shares of Chewy during the second quarter worth about $120,000. Orion Porfolio Solutions LLC grew its holdings in shares of Chewy by 19.2% during the second quarter. Orion Porfolio Solutions LLC now owns 53,175 shares of the company's stock worth $2,266,000 after buying an additional 8,562 shares in the last quarter. Thrivent Financial for Lutherans grew its stake in Chewy by 4.5% in the second quarter. Thrivent Financial for Lutherans now owns 114,234 shares of the company's stock valued at $4,868,000 after purchasing an additional 4,876 shares in the last quarter. State of Wyoming grew its stake in Chewy by 20.5% in the second quarter. State of Wyoming now owns 11,972 shares of the company's stock valued at $510,000 after purchasing an additional 2,038 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its stake in Chewy by 21.8% in the second quarter. Geneos Wealth Management Inc. now owns 7,202 shares of the company's stock valued at $307,000 after purchasing an additional 1,289 shares in the last quarter. 93.09% of the stock is currently 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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