Investors Buy High Volume of Chewy Call Options (NYSE:CHWY)

Chewy (NYSE:CHWY) was the recipient of some unusual options trading activity on Tuesday. Stock traders acquired 25,713 call options on the stock. This represents an increase of approximately 36% compared to the typical volume of 18,917 call options.

Insider Buying and Selling at Chewy

In other Chewy news, CEO Sumit Singh sold 4,220 shares of the business’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $108,032.00. Following the completion of the sale, the chief executive officer owned 123,955 shares in the company, valued at $3,173,248. The trade was a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 business’s stock in a transaction on Wednesday, April 1st. The shares were 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. In the last quarter, insiders have sold 95,675 shares of company stock valued at $2,459,955. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On Chewy

A number of hedge funds have recently bought and sold shares of CHWY. CoreCap Advisors LLC raised its position in Chewy by 306.3% in the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company’s stock worth $28,000 after purchasing an additional 637 shares in the last quarter. Harbour Investments Inc. grew its position in shares of Chewy by 81.4% during the 4th quarter. Harbour Investments Inc. now owns 907 shares of the company’s stock worth $30,000 after buying an additional 407 shares during the period. Osterweis Capital Management Inc. acquired a new position in shares of Chewy during the 2nd quarter worth about $30,000. Los Angeles Capital Management LLC acquired a new position in shares of Chewy during the 4th quarter worth about $31,000. Finally, Modus Advisors LLC acquired a new position in shares of Chewy during the 4th quarter worth about $34,000. 93.09% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CHWY has been the subject of a number of research analyst reports. Citizens Jmp cut their target price on Chewy from $48.00 to $45.00 and set a “market outperform” rating for the company in a research report on Thursday, March 26th. The Goldman Sachs Group dropped their price target on Chewy from $52.00 to $46.00 and set a “buy” rating on the stock in a report on Thursday, March 26th. Citigroup dropped their price target on Chewy from $40.00 to $37.00 and set a “buy” rating on the stock in a report on Tuesday, May 12th. Weiss Ratings raised Chewy from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday. Finally, JPMorgan Chase & Co. dropped their price target on Chewy from $40.00 to $35.00 and set an “overweight” rating on the stock in a report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, Chewy currently has an average rating of “Moderate Buy” and a consensus target price of $41.24.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: William Blair analyst Dylan Carden reiterated a Buy rating on Chewy, citing undervalued shares, margin upside, and long-term free cash flow potential. Article: Dylan Carden Reiterates Buy on Chewy, Citing Undervalued Shares, Structural Margin Upside, and Long-Term Free Cash Flow Potential
• Positive Sentiment: Unusually heavy call option buying suggests some traders are positioning for a post-earnings move higher in Chewy shares. Unusually large options trading activity on Chewy
• Neutral Sentiment: Chewy is set to report Q1 results before the bell, so investors are focused on revenue growth, margins, and guidance rather than the cookie-related search results that also mention “chewy.” Article: Earnings To Watch: Chewy (CHWY) Reports Q1 Results Tomorrow
• Neutral Sentiment: Investors are also watching Chewy’s AI spending and veterinary clinic expansion as possible longer-term growth drivers, though these initiatives could keep near-term costs elevated. Article: Is Chewy’s AI And Vet Clinic Push Quietly Rewriting Its Investment Story?
• Negative Sentiment: Chewy has recently been under pressure after its CEO sounded cautious about consumer demand, raising concerns that spending trends may remain soft. Article: Why Chewy Stock Got Mashed in May

Chewy Trading Down 0.1%

NYSE:CHWY traded down $0.02 during trading hours on Tuesday, hitting $20.13. 3,892,919 shares of the stock traded hands, compared to its average volume of 8,264,133. The firm has a 50 day moving average price of $24.03 and a 200 day moving average price of $27.81. Chewy has a fifty-two week low of $19.30 and a fifty-two week high of $46.35. The firm has a market cap of $8.39 billion, a price-to-earnings ratio of 38.73, a PEG ratio of 0.92 and a beta of 1.44.

Chewy (NYSE:CHWY) last announced its earnings results on Wednesday, March 25th. The company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.19). Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm had revenue of $3.26 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same period last year, the firm earned $0.28 earnings per share. Chewy’s revenue for the quarter was up .5% compared to the same quarter last year. Research analysts predict that Chewy will post 0.87 EPS for the current year.

About Chewy

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.