Morgan Stanley Cuts Chewy (NYSE:CHWY) Price Target to $48.00

Key Points

• Morgan Stanley has reduced Chewy's price target from $50.00 to $48.00, maintaining an "overweight" rating which suggests a potential upside of 36.54% from its previous close.
• Despite the downgrade, other firms like Mizuho and Cowen have upgraded or maintained positive ratings, with Mizuho raising their target to $50.00.
• Chewy reported $0.14 earnings per share for the last quarter, falling short of expectations, although revenue increased by 8.6% year-over-year.

Chewy (NYSE:CHWY - Get Free Report) had its price target reduced by analysts at Morgan Stanley from $50.00 to $48.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 36.54% from the company's previous close.

A number of other research firms also recently weighed in on CHWY. Mizuho upgraded Chewy from a "neutral" rating to an "outperform" rating and raised their price target for the company from $44.00 to $50.00 in a research note on Monday. Cowen restated a "buy" rating on shares of Chewy in a research note on Friday, June 6th. UBS Group reaffirmed a "neutral" rating and issued a $44.00 price objective on shares of Chewy in a research report on Tuesday, August 5th. Wall Street Zen cut Chewy from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Finally, Evercore ISI set a $52.00 price objective on Chewy and gave the company an "outperform" rating in a research report on Thursday, June 12th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Chewy has a consensus rating of "Moderate Buy" and a consensus target price of $45.39.

Chewy Stock Performance

NYSE:CHWY opened at $35.16 on Thursday. The company has a market cap of $14.60 billion, a PE ratio of 39.50, a PEG ratio of 8.81 and a beta of 1.65. Chewy has a 52-week low of $26.28 and a 52-week high of $48.62. The stock has a 50-day simple moving average of $38.71 and a 200 day simple moving average of $38.28.

Chewy (NYSE:CHWY - Get Free Report) last posted its quarterly earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share for the quarter, missing analysts' consensus estimates of $0.33 by ($0.19). The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.08 billion. Chewy had a net margin of 3.21% and a return on equity of 35.04%. The firm's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.24 earnings per share. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, research analysts predict that Chewy will post 0.24 earnings per share for the current fiscal year.

Insider Transactions at Chewy

In related news, CEO Sumit Singh sold 4,264 shares of Chewy stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $151,670.48. Following the completion of the sale, the chief executive officer directly owned 72,549 shares of the company's stock, valued at approximately $2,580,567.93. This trade represents a 5.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of Chewy stock in a transaction that occurred 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. In 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 currently owned by company insiders.

Institutional Trading of Chewy

Several hedge funds have recently added to or reduced their stakes in the company. Centaurus Financial Inc. acquired a new position in Chewy in the 2nd quarter valued at $120,000. Orion Porfolio Solutions LLC increased its stake in shares of Chewy by 19.2% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 53,175 shares of the company's stock valued at $2,266,000 after purchasing an additional 8,562 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in shares of Chewy by 4.5% in the 2nd quarter. Thrivent Financial for Lutherans now owns 114,234 shares of the company's stock valued at $4,868,000 after purchasing an additional 4,876 shares during the last quarter. State of Wyoming increased its stake in shares of Chewy by 20.5% in the 2nd quarter. State of Wyoming now owns 11,972 shares of the company's stock valued at $510,000 after purchasing an additional 2,038 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its stake in shares of Chewy by 21.8% in the 2nd quarter. Geneos Wealth Management Inc. now owns 7,202 shares of the company's stock valued at $307,000 after purchasing an additional 1,289 shares during the last quarter. 93.09% of the stock is owned by institutional investors and hedge funds.

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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