Capricorn Fund Managers Ltd Decreases Holdings in Chewy (NYSE:CHWY)

Key Points

• Capricorn Fund Managers Ltd reduced its stake in Chewy by 91.6%, selling 127,753 shares, leaving them with 11,747 shares worth approximately $382,000 at the end of the first quarter.
• Insiders, including CFO David Reeder and CEO Sumit Singh, sold significant shares of Chewy, with Reeder selling 11,582 shares and Singh selling 148,063 shares, indicating a decrease in their ownership.
• Chewy's recent financial performance showed revenue growth of 6.3% year-over-year, reporting earnings of $0.35 per share compared to estimates of $0.34, along with analyst target price upgrades from multiple firms.

Capricorn Fund Managers Ltd decreased its stake in shares of Chewy (NYSE:CHWY - Free Report) by 91.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 11,747 shares of the company's stock after selling 127,753 shares during the period. Capricorn Fund Managers Ltd's holdings in Chewy were worth $382,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in the stock. GSA Capital Partners LLP bought a new position in Chewy in the first quarter valued at $2,225,000. Federated Hermes Inc. grew its position in Chewy by 2.3% in the first quarter. Federated Hermes Inc. now owns 15,685 shares of the company's stock valued at $510,000 after purchasing an additional 354 shares in the last quarter. N.E.W. Advisory Services LLC bought a new position in shares of Chewy in the 1st quarter valued at about $44,000. Norden Group LLC grew its position in shares of Chewy by 48.0% in the 1st quarter. Norden Group LLC now owns 13,166 shares of the company's stock valued at $428,000 after acquiring an additional 4,272 shares during the period. Finally, LPL Financial LLC grew its position in shares of Chewy by 11.5% in the 1st quarter. LPL Financial LLC now owns 134,487 shares of the company's stock valued at $4,372,000 after acquiring an additional 13,818 shares during the period. Institutional investors own 93.09% of the company's stock.

Chewy Stock Performance

Shares of Chewy stock traded down $0.32 during midday trading on Wednesday, hitting $35.90. 4,477,408 shares of the company traded hands, compared to its average volume of 5,622,767. The stock has a market cap of $14.91 billion, a price-to-earnings ratio of 40.34, a PEG ratio of 7.56 and a beta of 1.71. The firm's fifty day moving average price is $41.57 and its 200-day moving average price is $38.02. Chewy has a 12 month low of $19.75 and a 12 month high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last announced its quarterly earnings results on Wednesday, June 11th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.01. The company had revenue of $3.12 billion for the quarter, compared to analyst estimates of $3.08 billion. Chewy had a net margin of 3.21% and a return on equity of 35.04%. The firm's revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.31 EPS. Equities research analysts forecast that Chewy will post 0.24 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CHWY shares. Wall Street Zen downgraded shares of Chewy from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Citizens Jmp upgraded shares of Chewy to a "strong-buy" rating in a research note on Thursday, July 10th. Jefferies Financial Group restated a "hold" rating and set a $43.00 target price (up previously from $41.00) on shares of Chewy in a research note on Thursday, June 5th. Royal Bank Of Canada restated an "outperform" rating and set a $44.00 target price (up previously from $42.00) on shares of Chewy in a research note on Thursday, June 12th. Finally, Evercore ISI set a $52.00 price objective on shares of Chewy and gave the stock an "outperform" rating in a research note on Thursday, June 12th. Nine research analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $43.89.

Insider Activity at Chewy

In related news, CTO Satish Mehta sold 9,243 shares of Chewy stock in a transaction that occurred on Friday, May 2nd. The shares were sold at an average price of $36.50, for a total transaction of $337,369.50. Following the sale, the chief technology officer directly owned 276,467 shares of the company's stock, valued at approximately $10,091,045.50. The trade was a 3.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Sumit Singh sold 148,063 shares of the business's stock in a transaction that occurred on Wednesday, May 14th. The stock was sold at an average price of $40.67, for a total transaction of $6,021,722.21. Following the sale, the chief executive officer directly owned 705,252 shares in the company, valued at $28,682,598.84. The trade was a 17.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 30,167,614 shares of company stock valued at $1,259,102,436. Company insiders own 0.43% of the company's stock.

Chewy 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.