Capital World Investors Purchases 56,022 Shares of Chewy $CHWY

Key Points

• Capital World Investors increased its Chewy stake by 58.9% in the fourth quarter, buying 56,022 additional shares and bringing its total holding to 151,107 shares worth about $4.99 million.
• Chewy reported a strong quarter with EPS of $0.43, beating estimates, and revenue of $3.36 billion, which was slightly above expectations and up 9.7% year over year.
• Despite the beat, Chewy cut its full-year sales outlook to $13.4 billion-$13.55 billion from a higher prior range, and the stock was trading near its 52-week low amid caution about softer consumer spending.

Capital World Investors boosted its position in Chewy (NYSE:CHWY - Free Report) by 58.9% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 151,107 shares of the company's stock after purchasing an additional 56,022 shares during the period. Capital World Investors' holdings in Chewy were worth $4,994,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. CoreCap Advisors LLC grew its position in Chewy by 306.3% in the 4th quarter. CoreCap Advisors LLC now owns 845 shares of the company's stock worth $28,000 after purchasing an additional 637 shares in the last quarter. Harbour Investments Inc. grew its position in Chewy by 81.4% in the 4th quarter. Harbour Investments Inc. now owns 907 shares of the company's stock worth $30,000 after purchasing an additional 407 shares in the last quarter. Osterweis Capital Management Inc. bought a new stake in Chewy in the 2nd quarter worth about $30,000. Los Angeles Capital Management LLC bought a new stake in Chewy in the 4th quarter worth about $31,000. Finally, Modus Advisors LLC bought a new stake in Chewy in the 4th quarter worth about $34,000. 93.09% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. BNP Paribas Exane reaffirmed a "neutral" rating and issued a $28.00 price objective (down from $38.00) on shares of Chewy in a research report on Thursday, March 26th. Wall Street Zen cut shares of Chewy from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. The Goldman Sachs Group dropped their target price on shares of Chewy from $52.00 to $46.00 and set a "buy" rating on the stock in a research note on Thursday, March 26th. UBS Group dropped their target price on shares of Chewy from $42.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, March 26th. Finally, Raymond James Financial reiterated a "buy" rating on shares of Chewy in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Chewy has an average rating of "Moderate Buy" and a consensus price target of $40.38.

Chewy Stock Down 1.8%

CHWY opened at $20.03 on Thursday. The stock has a market cap of $8.35 billion, a price-to-earnings ratio of 38.52, a PEG ratio of 0.91 and a beta of 1.44. Chewy has a twelve month low of $19.08 and a twelve month high of $43.84. The company's 50-day moving average price is $23.80 and its two-hundred day moving average price is $27.62.

Chewy (NYSE:CHWY - Get Free Report) last released its earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.19. The firm had revenue of $3.36 billion for the quarter, compared to analysts' expectations of $3.35 billion. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The company's quarterly revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.35 earnings per share. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. As a group, sell-side analysts anticipate that Chewy will post 0.87 earnings per share for the current year.

Key Headlines Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy posted Q1 net sales of $3.36 billion, up 7.7% year over year, with gross margin improving to 30.1% and adjusted EPS of $0.43 matching estimates, underscoring continued profitability and execution. Article Title
• Positive Sentiment: Management emphasized margin discipline and stronger cash generation, which helped support bullish analyst commentary; J.P. Morgan and Raymond James both reiterated Buy ratings, citing Chewy’s long-term growth drivers and attractive valuation. Article Title
• Positive Sentiment: Several market reports said the results beat expectations on profit and were accompanied by record adjusted EBITDA profitability, which some investors viewed as evidence that Chewy can still expand earnings even in a choppier consumer environment. Article Title
• Neutral Sentiment: Chewy lowered full-year net sales guidance to $13.4 billion-$13.55 billion from a prior $13.6 billion-$13.75 billion range, reflecting softer consumer spending on pets and creating a mixed read-through for growth investors. Article Title
• Negative Sentiment: The reduced outlook and management’s caution about a “stretched” U.S. consumer suggest demand could remain under pressure in the near term, which is weighing on the stock despite the strong quarter. Article Title

Insider Buying and Selling

In related news, CEO Sumit Singh sold 4,220 shares of the company's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $108,032.00. Following the sale, the chief executive officer directly owned 123,955 shares in the company, valued at approximately $3,173,248. This represents a 3.29% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Da-Wai Hu sold 8,149 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total transaction of $219,289.59. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 95,675 shares of company stock worth $2,459,955 over the last 90 days. 0.34% of the stock is currently owned by corporate insiders.

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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