Jefferies Financial Group Inc. Makes New $3.25 Million Investment in Chewy (NYSE:CHWY)

Key Points

• Jefferies Financial Group Inc. has acquired a new stake in Chewy, purchasing 100,000 shares valued at approximately $3.25 million in the first quarter.
• Chewy reported a quarterly EPS of $0.35, surpassing expectations, with revenues reaching $3.12 billion, reflecting a 6.3% year-over-year increase.
• Insider trading activity included Argos Holdings selling nearly 30 million shares, while the CFO sold 11,582 shares, indicating significant movements within company ownership.

Jefferies Financial Group Inc. purchased a new position in shares of Chewy (NYSE:CHWY - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 100,000 shares of the company's stock, valued at approximately $3,251,000.

Other hedge funds have also recently modified their holdings of the company. Parallel Advisors LLC raised its position 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 acquiring an additional 473 shares in the last quarter. Banque Transatlantique SA purchased a new position in Chewy in the fourth quarter worth $30,000. Golden State Wealth Management LLC raised its position in Chewy by 104.6% in the first quarter. Golden State Wealth Management LLC now owns 941 shares of the company's stock worth $31,000 after acquiring an additional 481 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in Chewy in the first quarter worth $44,000. Finally, North Star Investment Management Corp. raised its position in Chewy by 26.6% in the first quarter. North Star Investment Management Corp. now owns 1,678 shares of the company's stock worth $55,000 after acquiring an additional 353 shares in the last quarter. 93.09% of the stock is owned by institutional investors and hedge funds.

Chewy Trading Down 2.4%

CHWY stock traded down $0.87 during midday trading on Tuesday, hitting $34.96. 538,085 shares of the company's stock were exchanged, compared to its average volume of 6,265,957. Chewy has a 12-month low of $21.96 and a 12-month high of $48.62. The firm has a 50 day moving average price of $41.11 and a 200-day moving average price of $38.03. The stock has a market capitalization of $14.52 billion, a price-to-earnings ratio of 39.41, a price-to-earnings-growth ratio of 7.50 and a beta of 1.67.

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

Insider Buying and Selling

In related news, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the business's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $41.75, for a total transaction of $1,250,000,010.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Sumit Singh sold 148,063 shares of the business's stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $40.67, for a total value of $6,021,722.21. Following the transaction, the chief executive officer owned 705,252 shares of the company's stock, valued at $28,682,598.84. This trade represents a 17.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 30,138,926 shares of company stock valued at $1,258,056,019 in the last 90 days. Insiders own 0.43% of the company's stock.

Analysts Set New Price Targets

Several research firms have issued reports on CHWY. JMP Securities increased their price objective on Chewy from $39.00 to $48.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 10th. Jefferies Financial Group restated a "hold" rating and issued a $43.00 price target (up previously from $41.00) on shares of Chewy in a research report on Thursday, June 5th. Guggenheim restated a "buy" rating and issued a $45.00 price target (up previously from $42.00) on shares of Chewy in a research report on Thursday, June 12th. Royal Bank Of Canada reissued 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. Finally, JPMorgan Chase & Co. raised their price target on Chewy from $36.00 to $47.00 and gave the stock an "overweight" rating in a research note on Thursday, June 12th. Nine research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Chewy currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.89.

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.