Morgan Stanley Has Lowered Expectations for Chewy (NYSE:CHWY) Stock Price

Key Points

• Morgan Stanley trimmed its price target on Chewy from $43 to $42 but kept an overweight rating, implying significant upside from the current share price.
• Chewy’s latest quarterly results beat expectations, with EPS of $0.43 and revenue of $3.36 billion, while sales grew 9.7% year over year.
• Despite the earnings beat, the stock fell sharply and analysts remain mixed, with the consensus target at $35.86 and some firms lowering their outlooks amid concerns about a more cautious consumer environment.

Chewy (NYSE:CHWY - Get Free Report) had its price objective cut by stock analysts at Morgan Stanley from $43.00 to $42.00 in a note issued to investors on Thursday,MarketScreener reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's price objective indicates a potential upside of 122.95% from the company's current price.

Several other equities analysts have also recently weighed in on the company. Moffett Nathanson set a $28.00 price objective on Chewy in a research report on Thursday. Wall Street Zen downgraded Chewy from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Zacks Research lowered Chewy from a "strong-buy" rating to a "hold" rating in a report on Monday, May 25th. The Goldman Sachs Group lowered their price objective on shares of Chewy from $52.00 to $46.00 and set a "buy" rating on the stock in a research note on Thursday, March 26th. Finally, Argus raised shares of Chewy to a "strong-buy" rating in a research report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $35.86.

Chewy Trading Down 5.7%

NYSE:CHWY opened at $18.84 on Thursday. The firm has a market capitalization of $7.85 billion, a PE ratio of 36.45, a PEG ratio of 0.91 and a beta of 1.44. Chewy has a 1 year low of $19.08 and a 1 year high of $43.84. The firm's fifty day simple moving average is $23.80 and its 200 day simple moving average is $27.62.

Chewy (NYSE:CHWY - Get Free Report) last released its earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.19. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm had revenue of $3.36 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same quarter in the previous year, the business earned $0.35 EPS. The business's revenue was up 9.7% on a year-over-year basis. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. As a group, analysts anticipate that Chewy will post 0.87 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Sumit Singh sold 4,220 shares of the business's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $25.60, for a total transaction of $108,032.00. Following the sale, the chief executive officer directly owned 123,955 shares in the company, valued at approximately $3,173,248. The trade was a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible 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 on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,675 shares of company stock valued at $2,459,955 in the last quarter. Corporate insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On Chewy

A number of institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its holdings in Chewy by 2.5% in the 1st quarter. Royal Bank of Canada now owns 220,509 shares of the company's stock valued at $7,168,000 after buying an additional 5,466 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Chewy during the 1st quarter worth about $510,000. NewEdge Advisors LLC boosted its position in shares of Chewy by 5,238.3% during the 1st quarter. NewEdge Advisors LLC now owns 32,510 shares of the company's stock valued at $1,057,000 after acquiring an additional 31,901 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Chewy by 1.5% in the first quarter. Goldman Sachs Group Inc. now owns 1,176,138 shares of the company's stock valued at $38,236,000 after acquiring an additional 17,788 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Chewy by 31.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 383,966 shares of the company's stock valued at $12,483,000 after acquiring an additional 92,129 shares during the period. Institutional investors and hedge funds own 93.09% of the company's stock.

Key Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported Q1 net sales of $3.36 billion, up 7.7% year over year, with adjusted EPS of $0.43 topping expectations and gross margin expanding to 30.1%, showing the business remains profitable and resilient.
• Positive Sentiment: Several analysts stayed constructive, including William Blair, J.P. Morgan, Raymond James, and Evercore, citing margin discipline, cash flow, and long-term growth drivers. Article Title
• Neutral Sentiment: Chewy outlined fiscal 2026 net sales of $13.40 billion to $13.55 billion and said it is targeting net leverage below 2x adjusted EBITDA, reinforcing a focus on balance-sheet discipline. Article Title
• Neutral Sentiment: Robert W. Baird lowered its price target to $30 from $40 while keeping an outperform rating, and Needham reiterated a Hold, reflecting a mixed but not uniformly bearish analyst response. Article Title
• Negative Sentiment: Management cut its full-year sales forecast and flagged a more cautious consumer environment, which is the main reason investors are selling the stock despite the earnings beat.
• Negative Sentiment: Commentary around the report also noted macroeconomic pressure and growth concerns, with shares hitting 52-week lows as Wall Street worries about demand for discretionary pet spending. Article Title

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.