Investors Purchase Large Volume of Call Options on Chewy (NYSE:CHWY)

Key Points

• Chewy experienced a significant increase in call options trading, with investors purchasing 39,030 call options, surpassing the typical volume by 28%.
• Recent insider trading included CTO Satish Mehta selling 8,727 shares at an average price of $35.82, contributing to a total insider sale of over $1.25 billion in the last 90 days.
• Brokerages have issued various ratings for Chewy, with price targets ranging from $45.00 to $50.00, indicating a positive outlook among analysts.

Chewy (NYSE:CHWY - Get Free Report) saw some unusual options trading on Thursday. Investors bought 39,030 call options on the company. This is an increase of 28% compared to the typical volume of 30,398 call options.

Insider Activity at Chewy

In related news, CTO Satish Mehta sold 8,727 shares of the stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $35.82, for a total transaction of $312,601.14. Following the completion of the transaction, the chief technology officer directly owned 276,467 shares of the company's stock, valued at approximately $9,903,047.94. This represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the firm's stock in a transaction on 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. Over the last 90 days, insiders sold 30,008,777 shares of company stock valued at $1,252,444,321. 0.43% of the stock is owned by insiders.

Institutional Trading of Chewy

A number of large investors have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust lifted its holdings in shares of Chewy by 34.5% during the second quarter. Parkside Financial Bank & Trust now owns 1,161 shares of the company's stock worth $49,000 after purchasing an additional 298 shares during the period. Liberty One Investment Management LLC increased its stake in shares of Chewy by 4.7% during the first quarter. Liberty One Investment Management LLC now owns 7,051 shares of the company's stock valued at $229,000 after buying an additional 314 shares during the period. North Star Investment Management Corp. lifted its holdings in shares of Chewy by 26.6% during the first quarter. North Star Investment Management Corp. now owns 1,678 shares of the company's stock valued at $55,000 after purchasing an additional 353 shares during the last quarter. Federated Hermes Inc. raised its stake in shares of Chewy by 2.3% in the first quarter. Federated Hermes Inc. now owns 15,685 shares of the company's stock worth $510,000 after purchasing an additional 354 shares during the last quarter. Finally, Park Avenue Securities LLC increased its stake in shares of Chewy by 5.3% in the 1st quarter. Park Avenue Securities LLC now owns 7,281 shares of the company's stock worth $237,000 after purchasing an additional 364 shares in the last quarter. Institutional investors and hedge funds own 93.09% of the company's stock.

Chewy Stock Performance

Chewy stock traded up $0.90 during trading on Thursday, hitting $36.01. The company's stock had a trading volume of 7,935,286 shares, compared to its average volume of 6,510,008. The stock has a market capitalization of $14.95 billion, a price-to-earnings ratio of 40.37, a P/E/G ratio of 8.81 and a beta of 1.65. The stock's fifty day moving average is $38.71 and its 200 day moving average is $38.28. Chewy has a 1-year low of $26.28 and a 1-year high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last posted its quarterly earnings data 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 return on equity of 35.04% and a net margin of 3.21%.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 earned $0.24 EPS. The business's revenue for the quarter 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. On average, research analysts anticipate that Chewy will post 0.24 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on CHWY. Barclays cut their price objective on shares of Chewy from $50.00 to $47.00 and set an "overweight" rating for the company in a research note on Thursday. Guggenheim reiterated a "buy" rating and issued a $45.00 target price (up from $42.00) on shares of Chewy in a research report on Thursday, June 12th. Mizuho upgraded Chewy from a "neutral" rating to an "outperform" rating and boosted their price target for the company from $44.00 to $50.00 in a report on Monday. JMP Securities reiterated a "market outperform" rating and issued a $48.00 target price on shares of Chewy in a research note on Thursday. Finally, Cowen restated a "buy" rating on shares of Chewy in a research report on Friday, June 6th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, Chewy has an average rating of "Moderate Buy" and an average price target of $45.72.

Chewy Company 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.

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