Chewy (NYSE:CHWY) Shares Down 5.7% - Here's Why

Key Points

• Chewy shares fell 5.7% to about $23.30 on Wednesday, with trading volume 63% below the average session volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $31.50, although Barclays recently cut its target to $36 and Rosenblatt initiated coverage with a neutral rating.
• Chewy insiders own just 0.34% of the company, while institutional investors hold 93.09%; General Counsel Da-Wai Hu recently sold 4,203 shares at an average price of $19.49.

Chewy (NYSE:CHWY - Get Free Report) shares traded down 5.7% on Wednesday . The stock traded as low as $23.35 and last traded at $23.2950. 3,088,534 shares were traded during trading, a decline of 63% from the average session volume of 8,450,348 shares. The stock had previously closed at $24.69.

Analysts Set New Price Targets

CHWY has been the subject of a number of recent research reports. Jefferies Financial Group reiterated a "hold" rating and set a $23.00 price objective on shares of Chewy in a research note on Thursday, June 11th. TD Cowen reaffirmed a "buy" rating on shares of Chewy in a report on Tuesday, June 23rd. Rosenblatt Securities assumed coverage on Chewy in a research report on Thursday, August 20th. They set a "neutral" rating and a $25.00 price target for the company. Citigroup reiterated a "market outperform" rating on shares of Chewy in a research report on Thursday, June 11th. Finally, Barclays lowered their price objective on Chewy from $40.00 to $36.00 and set an "overweight" rating on the stock in a research report on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $31.50.

Chewy Trading Down 5.8%

The stock has a market capitalization of $9.52 billion, a price-to-earnings ratio of 38.75, a PEG ratio of 1.24 and a beta of 1.42. The stock has a 50-day moving average price of $21.43 and a 200 day moving average price of $23.31.

Insider Buying and Selling

In other Chewy news, General Counsel Da-Wai Hu sold 4,203 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $19.49, for a total value of $81,916.47. Following the sale, the general counsel directly owned 4,103 shares of the company's stock, valued at approximately $79,967.47. This trade represents a 50.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Harbour Investments Inc. increased its holdings in Chewy by 81.4% in the 4th quarter. Harbour Investments Inc. now owns 907 shares of the company's stock worth $30,000 after acquiring an additional 407 shares in the last quarter. Osterweis Capital Management Inc. acquired a new stake in shares of Chewy in the second quarter valued at about $30,000. Los Angeles Capital Management LLC acquired a new stake in shares of Chewy in the fourth quarter valued at about $31,000. Modus Advisors LLC purchased a new stake in shares of Chewy during the fourth quarter worth about $34,000. Finally, Montag A & Associates Inc. increased its stake in shares of Chewy by 58.8% during the fourth quarter. Montag A & Associates Inc. now owns 1,270 shares of the company's stock worth $42,000 after purchasing an additional 470 shares in the last quarter. Hedge funds and other institutional investors own 93.09% of the company's stock.

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.

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