JPMorgan Chase & Co. Issues Pessimistic Forecast for Chewy (NYSE:CHWY) Stock Price

Key Points

• JPMorgan cut Chewy’s price target from $40 to $35 while keeping an overweight rating, implying about 62.8% upside from the current price.
• Other analysts remain mixed but generally constructive: RBC and TD Cowen raised targets, while UBS lowered its target to $32. Overall, Chewy still carries a Moderate Buy consensus with an average target price of $41.91.
• Chewy shares were trading around $21.50 after a decline on Tuesday, and the company recently reported EPS of $0.09, missing estimates by a wide margin even as revenue matched expectations.

Chewy (NYSE:CHWY - Get Free Report) had its target price lowered by JPMorgan Chase & Co. from $40.00 to $35.00 in a report released on Tuesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 62.78% from the stock's current price.

Several other brokerages have also commented on CHWY. Royal Bank Of Canada raised their price objective on shares of Chewy from $43.00 to $47.00 and gave the stock an "outperform" rating in a report on Monday, March 30th. TD Cowen increased their target price on Chewy from $39.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. Weiss Ratings cut Chewy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, May 19th. The Goldman Sachs Group dropped their price target on Chewy from $52.00 to $46.00 and set a "buy" rating on the stock in a research report on Thursday, March 26th. Finally, UBS Group reduced their price target on Chewy from $42.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $41.91.

Chewy Price Performance

NYSE:CHWY traded down $1.04 during trading hours on Tuesday, hitting $21.50. The company had a trading volume of 7,871,442 shares, compared to its average volume of 9,025,882. The stock has a 50-day moving average price of $24.43 and a 200 day moving average price of $28.26. The company has a market capitalization of $8.96 billion, a PE ratio of 42.79, a price-to-earnings-growth ratio of 0.98 and a beta of 1.50. Chewy has a 52 week low of $19.30 and a 52 week high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings data on Wednesday, March 25th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.19). The company had revenue of $3.26 billion during the quarter, compared to the consensus estimate of $3.26 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The firm's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter last year, the company posted $0.28 earnings per share. Analysts anticipate that Chewy will post 0.88 EPS for the current fiscal year.

Insider Buying and Selling at Chewy

In other news, CEO Sumit Singh sold 4,220 shares of Chewy stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $25.60, for a total value of $108,032.00. Following the completion of the transaction, the chief executive officer owned 123,955 shares of the company's stock, valued at $3,173,248. The trade was a 3.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Da-Wai Hu sold 8,149 shares of the company'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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,675 shares of company stock worth $2,459,955 over the last three months. Corporate insiders own 0.43% of the company's stock.

Institutional Trading of Chewy

A number of institutional investors and hedge funds have recently bought and sold shares of the company. CoreCap Advisors LLC increased its position in Chewy by 306.3% during the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company's stock valued at $28,000 after acquiring an additional 637 shares during the last quarter. Harbour Investments Inc. increased its position in shares of Chewy by 81.4% during the 4th quarter. Harbour Investments Inc. now owns 907 shares of the company's stock valued at $30,000 after purchasing an additional 407 shares during the last quarter. Osterweis Capital Management Inc. purchased a new stake in shares of Chewy during the 2nd quarter valued at about $30,000. Los Angeles Capital Management LLC bought a new position in shares of Chewy in the 4th quarter worth approximately $31,000. Finally, Modus Advisors LLC bought a new position in shares of Chewy in the 4th quarter worth approximately $34,000. 93.09% of the stock is currently owned by institutional investors.

About Chewy

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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