Chewy (NYSE:CHWY) Downgraded by Zacks Research to “Strong Sell”

Chewy (NYSE:CHWY) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Piper Sandler set a $30.00 price objective on Chewy in a research report on Wednesday, June 10th. Citizens Jmp dropped their target price on Chewy from $45.00 to $28.00 and set a “market outperform” rating on the stock in a research report on Thursday, June 11th. Argus upgraded Chewy to a “strong-buy” rating in a research note on Tuesday, April 7th. Robert W. Baird reduced their price target on shares of Chewy from $40.00 to $30.00 and set an “outperform” rating for the company in a report on Thursday, June 11th. Finally, Wall Street Zen lowered shares of Chewy from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Chewy has an average rating of “Moderate Buy” and an average target price of $32.05.

Chewy Stock Up 2.2%

Shares of NYSE CHWY opened at $18.53 on Thursday. The firm’s 50-day moving average price is $21.91 and its two-hundred day moving average price is $26.38. Chewy has a 52-week low of $17.40 and a 52-week high of $43.63. The stock has a market capitalization of $7.59 billion, a P/E ratio of 30.89, a P/E/G ratio of 0.91 and a beta of 1.44.

Chewy (NYSE:CHWY) last posted its earnings results on Wednesday, June 10th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.24 by $0.19. The company had revenue of $3.36 billion during the quarter, compared to analyst estimates of $3.35 billion. Chewy had a return on equity of 60.02% and a net margin of 1.99%.The business’s revenue was up 9.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.35 earnings per share. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. As a group, equities research analysts expect that Chewy will post 0.8 earnings per share for the current year.

Insider Activity

In other Chewy news, General Counsel Da-Wai Hu sold 8,149 shares of the business’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total transaction of $219,289.59. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Sumit Singh sold 4,220 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was 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 in the company, valued at $3,173,248. This trade represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 95,675 shares of company stock valued at $2,459,955 in the last ninety days. Corporate insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in Chewy by 5.4% during the 4th quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company’s stock valued at $658,367,000 after purchasing an additional 1,017,214 shares in the last quarter. Wellington Management Group LLP increased 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 during the period. Viking Global Investors LP raised its stake in shares of Chewy by 146.9% in the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after buying an additional 8,052,955 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Chewy by 10.0% in the 4th quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company’s stock worth $370,558,000 after buying an additional 1,022,694 shares in the last quarter. Finally, Morgan Stanley lifted its holdings in shares of Chewy by 33.8% in the fourth quarter. Morgan Stanley now owns 7,660,258 shares of the company’s stock valued at $253,172,000 after buying an additional 1,937,014 shares during the period. Institutional investors and hedge funds own 93.09% of the company’s stock.

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.