Chewy (NYSE:CHWY) Shares Gap Up After Better-Than-Expected Earnings

Shares of Chewy (NYSE:CHWY) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $34.84, but opened at $37.20. Chewy shares last traded at $35.3650, with a volume of 9,405,080 shares.

The company reported $0.32 earnings per share for the quarter, topping analysts’ consensus estimates of $0.31 by $0.01. The company had revenue of $3.12 billion for the quarter, compared to the consensus estimate of $3.10 billion. Chewy had a net margin of 1.22% and a return on equity of 50.45%. The firm’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.20 EPS. Chewy has set its Q4 2025 guidance at 0.240-0.270 EPS.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on CHWY. Seaport Res Ptn raised shares of Chewy from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 10th. Deutsche Bank Aktiengesellschaft raised Chewy from a “hold” rating to a “buy” rating and set a $45.00 price objective for the company in a report on Thursday, September 11th. Robert W. Baird lowered their target price on Chewy from $52.00 to $48.00 and set an “outperform” rating on the stock in a research note on Thursday, September 11th. Wall Street Zen cut Chewy from a “buy” rating to a “hold” rating in a research report on Sunday, September 21st. Finally, Wedbush reiterated an “outperform” rating and set a $45.00 price target on shares of Chewy in a research note on Thursday, September 11th. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $46.17.

Insider Transactions at Chewy

In other Chewy news, CAO William G. Billings sold 1,121 shares of the firm’s stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $32.72, for a total value of $36,679.12. Following the completion of the transaction, the chief accounting officer owned 31,045 shares in the company, valued at $1,015,792.40. This trade represents a 3.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sumit Singh sold 40,789 shares of Chewy stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $33.73, for a total value of $1,375,812.97. Following the transaction, the chief executive officer directly owned 623,185 shares of the company’s stock, valued at $21,020,030.05. The trade was a 6.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 83,985 shares of company stock valued at $2,802,809 over the last three months. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Chewy

A number of large investors have recently modified their holdings of the company. BC Partners PE LP bought a new stake in Chewy during the 1st quarter worth approximately $7,142,402,000. Wellington Management Group LLP grew its position in shares of 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. AQR Capital Management LLC grew its position in shares of Chewy by 120.2% during the 3rd quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock valued at $407,948,000 after purchasing an additional 5,564,803 shares in the last quarter. Viking Global Investors LP purchased a new stake in shares of Chewy in the third quarter worth $221,815,000. Finally, State Street Corp raised its position in shares of Chewy by 75.5% in the second quarter. State Street Corp now owns 6,170,197 shares of the company’s stock worth $262,974,000 after buying an additional 2,654,496 shares in the last quarter. 93.09% of the stock is currently owned by institutional investors.

Chewy Price Performance

The company has a 50 day moving average of $35.24 and a 200-day moving average of $38.41. The company has a market cap of $14.60 billion, a P/E ratio of 100.29, a price-to-earnings-growth ratio of 8.44 and a beta of 1.58.

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.