Royal Bank Of Canada Has Lowered Expectations for Chewy (NYSE:CHWY) Stock Price

Key Points

• Royal Bank of Canada cut its price target on Chewy from $47 to $34, though it kept an outperform rating. The new target still implies significant upside from the current share price.
• Chewy reported a strong quarterly earnings beat, with EPS of $0.43 topping estimates and revenue of $3.36 billion slightly ahead of forecasts. Revenue rose 9.7% year over year, showing continued growth despite a softer backdrop.
• Despite the solid results, Chewy's stock fell about 4.8% and the company lowered its fiscal 2026 sales outlook. Wall Street broadly trimmed price targets, reflecting caution about near-term growth and consumer spending on pet products.

Chewy (NYSE:CHWY - Get Free Report) had its price objective lowered by investment analysts at Royal Bank Of Canada from $47.00 to $34.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective points to a potential upside of 78.83% from the company's current price.

CHWY has been the topic of several other research reports. The Goldman Sachs Group lowered their price objective on Chewy from $52.00 to $46.00 and set a "buy" rating for the company in a research report on Thursday, March 26th. Argus raised Chewy to a "strong-buy" rating in a research report on Tuesday, April 7th. UBS Group lowered their price objective on Chewy from $42.00 to $32.00 and set a "neutral" rating for the company in a research report on Thursday, March 26th. BNP Paribas Exane reissued a "neutral" rating and set a $28.00 price objective (down from $38.00) on shares of Chewy in a research report on Thursday, March 26th. Finally, JPMorgan Chase & Co. lowered their price objective on Chewy from $40.00 to $35.00 and set an "overweight" rating for the company in a research report on Tuesday, June 2nd. One investment 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's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $34.14.

Chewy Stock Down 4.8%

Shares of Chewy stock traded down $0.97 during mid-day trading on Thursday, reaching $19.01. 4,604,607 shares of the stock traded hands, compared to its average volume of 8,438,803. Chewy has a fifty-two week low of $18.38 and a fifty-two week high of $43.84. The stock has a market capitalization of $7.92 billion, a PE ratio of 36.49, a PEG ratio of 0.91 and a beta of 1.44. The business has a 50-day moving average of $23.80 and a 200 day moving average of $27.62.

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

Insider Buying and Selling

In related news, General Counsel Da-Wai Hu sold 8,149 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total value of $219,289.59. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Sumit Singh sold 83,306 shares of the company'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 value of $2,132,633.60. Following the completion of the sale, the chief executive officer owned 874,061 shares in the company, valued at approximately $22,375,961.60. This represents a 8.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last three months, insiders have sold 95,675 shares of company stock valued at $2,459,955. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On Chewy

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Chewy by 5.4% during the fourth quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company's stock worth $658,367,000 after acquiring an additional 1,017,214 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Chewy by 295.9% during the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company's stock worth $712,841,000 after acquiring an additional 13,171,325 shares during the last quarter. Viking Global Investors LP increased its position in shares of Chewy by 146.9% during the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company's stock worth $447,386,000 after acquiring an additional 8,052,955 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Chewy by 10.0% during the fourth quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company's stock worth $370,558,000 after acquiring an additional 1,022,694 shares during the last quarter. Finally, Morgan Stanley increased its position in shares of Chewy by 33.8% during the fourth quarter. Morgan Stanley now owns 7,660,258 shares of the company's stock worth $253,172,000 after acquiring an additional 1,937,014 shares during the last quarter. Institutional investors and hedge funds own 93.09% of the company's stock.

Key Headlines Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy delivered strong Q1 results, with revenue growth and adjusted EPS topping or matching estimates, while margins improved and profitability remained robust.
• Positive Sentiment: Several analysts maintained bullish ratings despite trimming targets, signaling continued confidence in Chewy’s longer-term business model and valuation. Article Title
• Neutral Sentiment: Management reiterated focus on margin discipline, clinics, health, and AI initiatives, which could support future growth but do not offset the softer near-term revenue outlook.
• Negative Sentiment: Chewy lowered its fiscal 2026 sales outlook, reinforcing concerns that consumers are becoming more selective on discretionary pet spending.
• Negative Sentiment: Wall Street broadly cut price targets following the report, reflecting caution around growth expectations and the company’s current operating environment.

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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