Traders Purchase Large Volume of Chewy Call Options (NYSE:CHWY)

Key Points

• Traders showed significant interest in Chewy by purchasing 33,037 call options on Wednesday, marking an increase of 42% compared to average volumes.
• Chewy's stock rose by 7.2%, reaching $38.80 during midday trading, despite a lower overall trading volume of 4,261,691 shares.
• The company reported earnings per share of $0.35, exceeding analysts' estimates and achieving a 6.3% increase in revenue compared to the same quarter last year.

Chewy (NYSE:CHWY - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock traders bought 33,037 call options on the stock. Thisrepresentsanincreaseofapproximately42% compared to the typical volume of 23,313 call options.

Chewy Stock Up 7.2%

CHWY stock traded up $2.59 during midday trading on Wednesday, reaching $38.80. The stock had a trading volume of 4,261,691 shares, compared to its average volume of 6,293,155. The business has a fifty day simple moving average of $39.90 and a two-hundred day simple moving average of $37.94. The firm has a market cap of $16.11 billion, a price-to-earnings ratio of 43.59, a PEG ratio of 7.47 and a beta of 1.67. Chewy has a twelve month low of $24.64 and a twelve month high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last issued its earnings results on Wednesday, June 11th. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.01. Chewy had a return on equity of 35.04% and a net margin of 3.21%. The firm had revenue of $3.12 billion for the quarter, compared to analysts' expectations of $3.08 billion. During the same quarter last year, the business earned $0.31 earnings per share. The company's revenue was up 6.3% compared to the same quarter last year. On average, equities analysts predict that Chewy will post 0.24 earnings per share for the current fiscal year.

Insider Activity

In related news, CAO William G. Billings sold 20,142 shares of the company's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $35.57, for a total value of $716,450.94. Following the completion of the sale, the chief accounting officer owned 29,464 shares of the company's stock, valued at $1,048,034.48. This represents a 40.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Sumit Singh sold 29,557 shares of the company's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $1,051,342.49. Following the completion of the sale, the chief executive officer directly owned 540,406 shares of the company's stock, valued at $19,222,241.42. The trade was a 5.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 30,008,777 shares of company stock worth $1,252,444,321 over the last ninety days. Insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

Several institutional investors have recently modified their holdings of CHWY. Federated Hermes Inc. acquired a new position in shares of Chewy during the 4th quarter worth approximately $513,000. Cerity Partners LLC increased its holdings in shares of Chewy by 12.4% during the 4th quarter. Cerity Partners LLC now owns 17,230 shares of the company's stock worth $550,000 after acquiring an additional 1,906 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Chewy by 4,577.5% during the 4th quarter. Invesco Ltd. now owns 2,191,146 shares of the company's stock worth $73,381,000 after acquiring an additional 2,144,302 shares during the last quarter. Legal & General Group Plc increased its holdings in shares of Chewy by 49.5% during the 4th quarter. Legal & General Group Plc now owns 231,978 shares of the company's stock worth $7,769,000 after acquiring an additional 76,836 shares during the last quarter. Finally, Advisory Services Network LLC acquired a new position in shares of Chewy during the 4th quarter worth approximately $472,000. Institutional investors own 93.09% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on CHWY. Cowen reissued a "buy" rating on shares of Chewy in a research report on Friday, June 6th. Citigroup reissued an "outperform" rating on shares of Chewy in a research report on Thursday, July 10th. Citizens Jmp upgraded Chewy to a "strong-buy" rating in a report on Thursday, July 10th. Jefferies Financial Group restated a "hold" rating and issued a $43.00 price objective (up previously from $41.00) on shares of Chewy in a report on Thursday, June 5th. Finally, Morgan Stanley restated an "overweight" rating and issued a $50.00 price objective (up previously from $39.00) on shares of Chewy in a report on Thursday, June 12th. Nine analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, Chewy currently has an average rating of "Moderate Buy" and a consensus price target of $43.78.

About Chewy

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.