Chewy (NYSE:CHWY) Trading 6.1% Higher - Should You Buy?

Key Points

• Chewy shares rose 6.1% to approximately $21.69 in Monday trading, though volume was 77% below the average session level.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $30.64, despite several firms lowering their individual targets.
• Chewy exceeded quarterly expectations, reporting $0.36 in EPS versus $0.18 expected and $3.33 billion in revenue, up 7.3% year over year. Institutional investors own 93.09% of the company, while insider ownership is minimal at 0.34%.

Chewy (NYSE:CHWY - Get Free Report) rose 6.1% during trading on Monday . The stock traded as high as $21.51 and last traded at $21.6850. 1,993,724 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 8,519,829 shares. The stock had previously closed at $20.44.

Analysts Set New Price Targets

CHWY has been the topic of several analyst reports. Morgan Stanley dropped their target price on Chewy from $37.00 to $36.00 and set an "overweight" rating on the stock in a report on Thursday. Citigroup reissued a "market outperform" rating on shares of Chewy in a research report on Thursday. Royal Bank Of Canada cut their target price on shares of Chewy from $34.00 to $31.00 and set an "outperform" rating on the stock in a research note on Thursday. Moffett Nathanson set a $28.00 price target on Chewy in a research note on Thursday, June 11th. Finally, JPMorgan Chase & Co. reissued a "neutral" rating and issued a $24.00 price objective (down from $29.00) on shares of Chewy in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $30.64.

Chewy Stock Performance

The stock's fifty day moving average is $22.43 and its two-hundred day moving average is $23.06. The firm has a market cap of $8.85 billion, a price-to-earnings ratio of 32.81, a PEG ratio of 0.81 and a beta of 1.42. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.42 and a current ratio of 0.84.

Chewy (NYSE:CHWY - Get Free Report) last issued its quarterly earnings data on Wednesday, September 9th. The company reported $0.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.18. Chewy had a return on equity of 60.88% and a net margin of 2.09%.The business had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.32 billion. During the same period in the prior year, the company posted $0.33 EPS. The business's revenue for the quarter was up 7.3% compared to the same quarter last year. On average, analysts expect that Chewy will post 0.8 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Chewy news, General Counsel Da-Wai Hu sold 4,203 shares of the firm's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $19.49, for a total transaction of $81,916.47. Following the transaction, the general counsel owned 4,103 shares of the company's stock, valued at approximately $79,967.47. This trade represents a 50.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On Chewy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CHWY. Wellington Management Group LLP boosted its stake in Chewy by 295.9% during the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company's stock valued at $712,841,000 after purchasing an additional 13,171,325 shares in the last quarter. Viking Global Investors LP raised its stake in shares of Chewy by 146.9% in the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company's stock worth $447,386,000 after buying an additional 8,052,955 shares in the last quarter. AQR Capital Management LLC lifted its holdings in shares of Chewy by 120.2% in the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company's stock valued at $407,948,000 after buying an additional 5,564,803 shares during the period. California State Teachers Retirement System lifted its holdings in shares of Chewy by 1,828.1% in the second quarter. California State Teachers Retirement System now owns 5,042,544 shares of the company's stock valued at $99,086,000 after buying an additional 4,781,020 shares during the period. Finally, Norges Bank bought a new position in Chewy during the fourth quarter valued at about $154,647,000. Institutional investors own 93.09% of the company's stock.

About Chewy

Chewy, Inc is an e-commerce company focused on pet products and services. Through its website and mobile applications, the company sells pet food, treats, supplies, toys, bedding, medications, and other products for dogs, cats, fish, birds, reptiles, and small pets.

Chewy supports recurring purchases through its Autoship program and provides access to prescription and over-the-counter pet medications through Chewy Pharmacy. The company also offers pet health-related services, including veterinary consultations in certain markets, and sells products under a range of national and private-label brands.

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