Wedbush Reaffirms "Outperform" Rating for Chewy (NYSE:CHWY)

Key Points

• Wedbush has reaffirmed an "outperform" rating for Chewy (NYSE:CHWY) with a price target of $45.00, indicating a potential upside of 28.00% from its previous close.
• Chewy reported earnings of $0.14 per share for the last quarter, missing the consensus estimate of $0.33, but achieved revenue of $3.10 billion, slightly exceeding expectations.
• Various analysts have set target prices for Chewy ranging from $36.00 to $52.00, with a general consensus leaning towards a "Moderate Buy" rating.

Chewy (NYSE:CHWY - Get Free Report)'s stock had its "outperform" rating reiterated by analysts at Wedbush in a report released on Thursday,Benzinga reports. They presently have a $45.00 price objective on the stock. Wedbush's target price would indicate a potential upside of 28.00% from the stock's previous close.

Other equities analysts have also recently issued reports about the stock. Evercore ISI set a $52.00 target price on shares of Chewy and gave the company an "outperform" rating in a research note on Thursday, June 12th. Robert W. Baird cut their target price on shares of Chewy from $52.00 to $48.00 and set an "outperform" rating for the company in a research note on Thursday. JPMorgan Chase & Co. raised their target price on shares of Chewy from $36.00 to $47.00 and gave the company an "overweight" rating in a research note on Thursday, June 12th. UBS Group reiterated a "neutral" rating and set a $44.00 price objective on shares of Chewy in a research report on Tuesday, August 5th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $44.00 price objective (up previously from $42.00) on shares of Chewy in a research report on Thursday, June 12th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Chewy has a consensus rating of "Moderate Buy" and a consensus target price of $45.56.

Chewy Stock Performance

CHWY opened at $35.16 on Thursday. The stock has a market capitalization of $14.60 billion, a price-to-earnings ratio of 39.50, a PEG ratio of 8.81 and a beta of 1.65. The company has a fifty day moving average of $38.71 and a 200 day moving average of $38.28. Chewy has a fifty-two week low of $26.28 and a fifty-two week high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last posted its earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.33 by ($0.19). The company had revenue of $3.10 billion for the quarter, compared to analysts' expectations of $3.08 billion. Chewy had a net margin of 3.21% and a return on equity of 35.04%. The business's revenue was up 8.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.24 earnings per share. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, equities research analysts forecast that Chewy will post 0.24 earnings per share for the current year.

Insider Activity

In related news, CTO Satish Mehta sold 8,727 shares of Chewy stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $35.82, for a total transaction of $312,601.14. Following the completion of the transaction, the chief technology officer directly owned 276,467 shares of the company's stock, valued at approximately $9,903,047.94. The trade was a 3.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of Chewy stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $41.75, for a total transaction of $1,250,000,010.00. The disclosure for this sale can be found here. Insiders sold a total of 30,008,777 shares of company stock valued at $1,252,444,321 in the last quarter. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Chewy

A number of large investors have recently made changes to their positions in CHWY. Parallel Advisors LLC lifted its holdings in Chewy by 150.2% during the 1st quarter. Parallel Advisors LLC now owns 788 shares of the company's stock valued at $26,000 after buying an additional 473 shares in the last quarter. Osterweis Capital Management Inc. purchased a new stake in Chewy in the 2nd quarter valued at about $30,000. Golden State Wealth Management LLC boosted its position in Chewy by 104.6% in the 1st quarter. Golden State Wealth Management LLC now owns 941 shares of the company's stock valued at $31,000 after buying an additional 481 shares during the period. N.E.W. Advisory Services LLC purchased a new stake in Chewy in the 1st quarter valued at about $44,000. Finally, EverSource Wealth Advisors LLC boosted its position in Chewy by 412.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company's stock valued at $46,000 after buying an additional 878 shares during the period. 93.09% of the stock is owned by hedge funds and other institutional investors.

Chewy Company Profile

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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