Guggenheim Reiterates Buy Rating for Chewy (NYSE:CHWY)

Key Points

• Guggenheim reiterated a "buy" rating on Chewy with a $45 price target—implying roughly a 79% upside—and the MarketBeat consensus target sits near $42.91 with an average rating of "Moderate Buy."
• Chewy missed quarterly EPS ($0.09 vs. $0.28 expected) while reporting flat revenue ( $3.26B, +0.5% YoY) and low net margins, and the stock traded around $25.13 (52-week range $22.74–$48.62).
• Company insiders have recently sold shares (CTO sold 13,013; General Counsel sold 8,149), insiders own about 0.43% while institutional and hedge fund ownership is very high at roughly 93.09%.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "buy" rating restated by investment analysts at Guggenheim in a research note issued on Monday,Benzinga reports. They currently have a $45.00 price target on the stock. Guggenheim's target price would indicate a potential upside of 79.06% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Chewy in a research note on Wednesday, January 21st. BNP Paribas Exane reissued a "neutral" rating and issued a $28.00 price target (down from $38.00) on shares of Chewy in a research note on Thursday, March 26th. JPMorgan Chase & Co. dropped their price target on shares of Chewy from $46.00 to $40.00 and set an "overweight" rating on the stock in a research note on Thursday, March 26th. TD Cowen lifted their price target on shares of Chewy from $39.00 to $42.00 and gave the company a "buy" rating in a research note on Thursday, March 26th. Finally, Raymond James Financial raised shares of Chewy from a "market perform" rating to an "outperform" rating and set a $28.00 price target on the stock in a research note on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Chewy has an average rating of "Moderate Buy" and a consensus target price of $42.91.

Chewy Stock Down 0.3%

Shares of NYSE:CHWY traded down $0.08 during trading on Monday, hitting $25.13. 525,374 shares of the stock traded hands, compared to its average volume of 8,254,152. The company has a market cap of $10.47 billion, a price-to-earnings ratio of 48.25, a P/E/G ratio of 1.09 and a beta of 1.61. The company has a fifty day moving average price of $25.88 and a two-hundred day moving average price of $31.33. Chewy has a 52-week low of $22.74 and a 52-week high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last posted its earnings results on Wednesday, March 25th. The company reported $0.09 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.19). The firm had revenue of $3.26 billion for the quarter, compared to analysts' expectations of $3.26 billion. Chewy had a net margin of 1.77% and a return on equity of 53.48%. Chewy's revenue for the quarter was up .5% compared to the same quarter last year. During the same period last year, the firm earned $0.28 earnings per share. On average, equities research analysts predict that Chewy will post 0.24 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Satish Mehta sold 13,013 shares of the firm's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $28.99, for a total value of $377,246.87. Following the transaction, the chief technology officer directly owned 273,835 shares of the company's stock, valued at approximately $7,938,476.65. This trade represents a 4.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Da-Wai Hu sold 8,149 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total transaction of $219,289.59. The disclosure for this sale is available in the SEC filing. 0.43% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Chewy

Several hedge funds and other institutional investors have recently modified their holdings of the business. Park Avenue Securities LLC lifted its stake in shares of Chewy by 4.0% in the third quarter. Park Avenue Securities LLC now owns 7,810 shares of the company's stock worth $316,000 after buying an additional 302 shares in the last quarter. Transatlantique Private Wealth LLC lifted its stake in shares of Chewy by 3.0% in the third quarter. Transatlantique Private Wealth LLC now owns 10,922 shares of the company's stock worth $442,000 after buying an additional 314 shares in the last quarter. National Bank of Canada FI lifted its stake in shares of Chewy by 12.5% in the third quarter. National Bank of Canada FI now owns 2,910 shares of the company's stock worth $118,000 after buying an additional 324 shares in the last quarter. Angeles Wealth Management LLC lifted its stake in shares of Chewy by 6.6% in the third quarter. Angeles Wealth Management LLC now owns 5,305 shares of the company's stock worth $215,000 after buying an additional 330 shares in the last quarter. Finally, Sivia Capital Partners LLC lifted its stake in shares of Chewy by 3.2% in the third quarter. Sivia Capital Partners LLC now owns 11,072 shares of the company's stock worth $448,000 after buying an additional 343 shares in the last quarter. 93.09% of the stock is owned by hedge funds and other institutional investors.

Chewy Company Profile

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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