Chewy (NYSE:CHWY) Stock Rating Lowered by Zacks Research

Chewy (NYSE:CHWY) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Other equities research analysts have also issued reports about the stock. Citigroup lowered their price objective on shares of Chewy from $40.00 to $37.00 and set a “buy” rating for the company in a report on Tuesday, May 12th. Barclays decreased their target price on shares of Chewy from $48.00 to $40.00 and set an “overweight” rating on the stock in a research report on Tuesday. Bank of America cut their price target on shares of Chewy from $46.00 to $40.00 and set a “buy” rating for the company in a research report on Thursday, March 26th. JPMorgan Chase & Co. lowered their target price on Chewy from $46.00 to $40.00 and set an “overweight” rating for the company in a research note on Thursday, March 26th. Finally, BNP Paribas Exane restated a “neutral” rating and set a $28.00 target price (down from $38.00) on shares of Chewy in a report on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $42.14.

Chewy Trading Up 2.7%

Shares of Chewy stock opened at $21.28 on Monday. The firm has a market capitalization of $8.87 billion, a PE ratio of 40.92, a price-to-earnings-growth ratio of 0.90 and a beta of 1.50. Chewy has a 12 month low of $19.30 and a 12 month high of $48.62. The business’s 50-day moving average price is $24.66 and its 200-day moving average price is $28.59.

Chewy (NYSE:CHWY) last released its earnings results on Wednesday, March 25th. The company reported $0.09 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.19). The firm had revenue of $3.26 billion during the quarter, compared to the consensus estimate of $3.26 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The business’s quarterly revenue was up .5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.28 EPS. As a group, analysts predict that Chewy will post 0.89 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Sumit Singh sold 4,220 shares of Chewy stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $108,032.00. Following the sale, the chief executive officer owned 123,955 shares of the company’s stock, valued at approximately $3,173,248. The trade was a 3.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, General Counsel Da-Wai Hu sold 8,149 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total transaction of $219,289.59. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 95,675 shares of company stock valued at $2,459,955. Corporate insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Chewy

Hedge funds have recently made changes to their positions in the company. Essential Partners LLC grew its stake in Chewy by 144.7% in the first quarter. Essential Partners LLC now owns 7,778 shares of the company’s stock worth $210,000 after purchasing an additional 4,600 shares during the period. Bank of America Corp DE lifted its position in Chewy by 12.7% during the first quarter. Bank of America Corp DE now owns 4,816,924 shares of the company’s stock valued at $130,057,000 after buying an additional 542,298 shares during the period. Bull Harbor Capital LLC bought a new stake in shares of Chewy during the 1st quarter valued at $398,000. Encore Global Management LP bought a new stake in shares of Chewy during the 1st quarter valued at $3,010,000. Finally, Amundi grew its position in shares of Chewy by 191.8% in the 1st quarter. Amundi now owns 1,466,126 shares of the company’s stock worth $39,584,000 after buying an additional 963,750 shares during the period. 93.09% of the stock is currently owned by institutional investors.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Analysts and commentary highlighted Chewy’s strong Autoship business, AI initiatives, and veterinary expansion, which could support longer-term growth. Chewy vs. Petco: Which Pet-Care Stock Looks Better Positioned?
• Positive Sentiment: Chewy’s debt-free balance sheet, record free cash flow, and rising liquidity were cited as giving the company flexibility to fund growth investments and share buybacks. Chewy’s Capital Strength Provides Flexibility for Growth Investments
• Positive Sentiment: Wall Street analysts remain broadly constructive on Chewy, with coverage suggesting the stock still has meaningful upside from current levels. Is Chewy (CHWY) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Chewy outperformed the broader market in the latest session, but the move appeared tied more to general trading momentum and analyst sentiment than to a new company-specific catalyst. Chewy (CHWY) Beats Stock Market Upswing: What Investors Need to Know
• Negative Sentiment: Morgan Stanley said Chewy may need to lower the high end of its full-year sales guidance because of weakening pet industry trends, which is the main bearish takeaway for investors today. Chewy Likely to Lower High End of Sales Guidance Amid Weakening Pet Industry Trends, Morgan Stanley Says
• Negative Sentiment: Morgan Stanley also trimmed its price target on Chewy from $49 to $43, signaling slightly less confidence in near-term upside even while keeping an overweight rating. Morgan Stanley price target cut

Chewy Company Profile

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.