JMP Securities Reiterates "Market Outperform" Rating for Chewy (NYSE:CHWY)

Key Points

• JMP Securities has maintained a "Market Outperform" rating for Chewy (NYSE:CHWY), with a price target of $48.00, indicating a potential upside of 36.54% from its current price.
• Chewy recently reported $0.14 EPS for the quarter, missing estimates, although revenue rose by 8.6% annually to $3.10 billion.
• Insider selling has occurred recently, with CAO William G. Billings and CEO Sumit Singh each reducing their share positions by approximately 40% and 5% respectively.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "market outperform" rating restated by JMP Securities in a research note issued on Thursday,Benzinga reports. They currently have a $48.00 price objective on the stock. JMP Securities' target price would suggest a potential upside of 36.54% from the company's current price.

Other research analysts also recently issued research reports about the company. Cowen reaffirmed a "buy" rating on shares of Chewy in a report on Friday, June 6th. Citizens Jmp raised Chewy to a "strong-buy" rating in a report on Thursday, July 10th. Mizuho raised Chewy from a "neutral" rating to an "outperform" rating and upped their price objective for the stock from $44.00 to $50.00 in a report on Monday. Needham & Company LLC reaffirmed a "hold" rating on shares of Chewy in a report on Thursday. Finally, UBS Group reissued a "neutral" rating and issued a $44.00 price target on shares of Chewy in a research note on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $45.56.

Chewy Trading Down 16.5%

CHWY stock opened at $35.16 on Thursday. Chewy has a 1-year low of $26.28 and a 1-year high of $48.62. The firm has a market cap of $14.60 billion, a P/E ratio of 39.50, a P/E/G ratio of 8.81 and a beta of 1.65. The business's 50 day moving average is $38.71 and its 200-day moving average is $38.28.

Chewy (NYSE:CHWY - Get Free Report) last released 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 net margin of 3.21% and a return on equity of 35.04%. The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.08 billion. During the same quarter in the prior year, the company posted $0.24 earnings per share. The company's revenue for the quarter was up 8.6% on a year-over-year basis. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. Sell-side analysts forecast that Chewy will post 0.24 EPS for the current year.

Insider Transactions at Chewy

In other Chewy news, CAO William G. Billings sold 20,142 shares of the stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $716,450.94. Following the completion of the transaction, the chief accounting officer owned 29,464 shares in the company, valued at approximately $1,048,034.48. This represents a 40.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Sumit Singh sold 29,557 shares of the stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $35.57, for a total value of $1,051,342.49. Following the transaction, the chief executive officer owned 540,406 shares of the company's stock, valued at approximately $19,222,241.42. This trade represents a 5.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 30,008,777 shares of company stock worth $1,252,444,321 in the last 90 days. Company insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

A number of large investors have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust grew its holdings in shares of Chewy by 34.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,161 shares of the company's stock valued at $49,000 after acquiring an additional 298 shares in the last quarter. Liberty One Investment Management LLC grew its holdings in shares of Chewy by 4.7% in the 1st quarter. Liberty One Investment Management LLC now owns 7,051 shares of the company's stock valued at $229,000 after acquiring an additional 314 shares in the last quarter. North Star Investment Management Corp. grew its holdings in shares of Chewy by 26.6% in the 1st quarter. North Star Investment Management Corp. now owns 1,678 shares of the company's stock valued at $55,000 after acquiring an additional 353 shares in the last quarter. Federated Hermes Inc. grew its holdings in shares of Chewy by 2.3% in the 1st quarter. Federated Hermes Inc. now owns 15,685 shares of the company's stock valued at $510,000 after acquiring an additional 354 shares in the last quarter. Finally, Park Avenue Securities LLC grew its holdings 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 valued at $237,000 after acquiring an additional 364 shares in the last quarter. Institutional investors own 93.09% of the company's stock.

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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