Wedbush Issues Optimistic Forecast for Chewy Earnings

Key Points

• Wedbush raised its Q3 2026 earnings per share estimate for Chewy to $0.12, expecting an increase from the previous estimate of $0.11, while maintaining an "Outperform" rating with a target price of $45.00.
• Chewy's recent quarterly earnings report revealed earnings of $0.14 per share, missing analysts’ expectations of $0.33, despite an 8.6% year-over-year increase in revenue to $3.10 billion.
• Recent analyst activity shows support for Chewy with two "Strong Buy" ratings and a consensus rating of "Moderate Buy" with an average target price of $45.72.

Chewy (NYSE:CHWY - Free Report) - Investment analysts at Wedbush boosted their Q3 2026 earnings per share (EPS) estimates for Chewy in a note issued to investors on Wednesday, September 10th. Wedbush analyst S. Devitt now expects that the company will post earnings of $0.12 per share for the quarter, up from their previous estimate of $0.11. Wedbush has a "Outperform" rating and a $45.00 price objective on the stock. The consensus estimate for Chewy's current full-year earnings is $0.24 per share. Wedbush also issued estimates for Chewy's FY2027 earnings at $0.83 EPS.

Several other equities analysts have also issued reports on CHWY. Evercore ISI set a $52.00 price target on shares of Chewy and gave the stock an "outperform" rating in a report on Thursday, June 12th. Seaport Res Ptn raised Chewy from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 10th. TD Cowen reduced their target price on Chewy from $50.00 to $48.00 and set a "buy" rating on the stock in a research report on Thursday. UBS Group reduced their price target on shares of Chewy from $46.00 to $43.00 and set a "neutral" rating on the stock in a research report on Thursday. Finally, Wall Street Zen raised Chewy from a "hold" rating to a "buy" rating in a research report on Saturday. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $45.72.

Chewy Trading Down 3.6%

Shares of CHWY opened at $34.72 on Monday. Chewy has a twelve month low of $26.28 and a twelve month high of $48.62. The company has a market cap of $14.42 billion, a P/E ratio of 99.20, a P/E/G ratio of 7.25 and a beta of 1.65. The company's fifty day simple moving average is $38.47 and its 200-day simple moving average is $38.33.

Chewy (NYSE:CHWY - Get Free Report) last released its quarterly earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.33 by ($0.19). Chewy had a net margin of 1.22% and a return on equity of 50.45%. The firm had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.08 billion. During the same quarter in the prior year, the firm earned $0.24 earnings per share. The company's revenue for the quarter was up 8.6% compared to the same quarter last year. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS.

Insider Activity

In related news, CTO Satish Mehta sold 8,727 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $35.82, for a total transaction of $312,601.14. Following the sale, the chief technology officer owned 276,467 shares in the company, valued at approximately $9,903,047.94. This trade represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Sumit Singh sold 4,264 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $35.57, for a total value of $151,670.48. Following the transaction, the chief executive officer directly owned 72,549 shares in the company, valued at approximately $2,580,567.93. This represents a 5.55% decrease in their position. The disclosure for this sale can be found here. Insiders sold 30,008,777 shares of company stock valued at $1,252,444,321 over the last quarter. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Chewy

Several hedge funds have recently modified their holdings of CHWY. BC Partners PE LP purchased a new stake in Chewy during the first quarter valued at about $7,142,402,000. Invesco Ltd. boosted its position in shares of Chewy by 34.7% in the second quarter. Invesco Ltd. now owns 7,187,518 shares of the company's stock worth $306,332,000 after buying an additional 1,852,531 shares during the period. State Street Corp boosted its holdings in Chewy by 75.5% in the 2nd quarter. State Street Corp now owns 6,170,197 shares of the company's stock worth $262,974,000 after acquiring an additional 2,654,496 shares during the period. AQR Capital Management LLC lifted its holdings in Chewy by 231.1% in the 2nd quarter. AQR Capital Management LLC now owns 4,631,343 shares of the company's stock worth $196,323,000 after buying an additional 3,232,763 shares in the last quarter. Finally, Voya Investment Management LLC raised its position in shares of Chewy by 8.2% in the 1st quarter. Voya Investment Management LLC now owns 4,146,973 shares of the company's stock valued at $134,818,000 after purchasing an additional 312,795 shares in the last quarter. 93.09% of the stock is owned by institutional investors and hedge funds.

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.

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