Chewy (NYSE:CHWY) Stock Price Breaks Below 50 Day Moving Average – Should You Sell?

Shares of Chewy (NYSE:CHWY) crossed below its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $21.05 and traded as low as $20.33. Chewy shares last traded at $20.5920, with a volume of 8,352,814 shares.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on CHWY shares. Zacks Research upgraded Chewy from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 11th. Mizuho reduced their target price on shares of Chewy from $32.00 to $28.00 and set an “outperform” rating for the company in a research note on Tuesday, September 29th. Piper Sandler reissued an “overweight” rating on shares of Chewy in a research report on Friday, August 21st. The Goldman Sachs Group lowered their price target on shares of Chewy from $34.00 to $30.00 and set a “buy” rating on the stock in a research report on Friday, September 11th. Finally, JPMorgan Chase & Co. cut shares of Chewy from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $29.00 to $24.00 in a research note on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, Chewy has a consensus rating of “Moderate Buy” and a consensus price target of $30.45.

Chewy Stock Performance

The stock has a market capitalization of $8.54 billion, a P/E ratio of 32.05, a PEG ratio of 0.87 and a beta of 1.38. The company has a quick ratio of 0.42, a current ratio of 0.84 and a debt-to-equity ratio of 1.59. The company has a 50-day moving average price of $20.93 and a two-hundred day moving average price of $23.35.

Chewy (NYSE:CHWY) last released its quarterly earnings data on Wednesday, September 9th. The company reported $0.36 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.18. The company had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.32 billion. Chewy had a net margin of 2.09% and a return on equity of 60.88%. Chewy’s revenue was up 7.3% compared to the same quarter last year. During the same period last year, the business earned $0.33 earnings per share. Equities analysts expect that Chewy will post 0.76 earnings per share for the current year.

Insider Activity

In other news, CAO William G. Billings sold 17,283 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $21.00, for a total transaction of $362,943.00. Following the completion of the transaction, the chief accounting officer owned 39,772 shares of the company’s stock, valued at approximately $835,212. The trade was a 30.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bank of America Corp DE raised its holdings in shares of 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 acquiring an additional 542,298 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Chewy by 49.9% in the first quarter. Dimensional Fund Advisors LP now owns 1,739,267 shares of the company’s stock valued at $46,942,000 after acquiring an additional 578,801 shares in the last quarter. Amundi boosted its holdings in Chewy by 191.8% in the first quarter. Amundi now owns 1,466,126 shares of the company’s stock valued at $39,584,000 after acquiring an additional 963,750 shares in the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Chewy by 0.5% in the first quarter. The Manufacturers Life Insurance Company now owns 839,927 shares of the company’s stock valued at $22,678,000 after acquiring an additional 3,942 shares in the last quarter. Finally, Principal Financial Group Inc. boosted its holdings in Chewy by 11.1% in the first quarter. Principal Financial Group Inc. now owns 535,915 shares of the company’s stock valued at $14,470,000 after acquiring an additional 53,586 shares in the last quarter. 93.09% of the stock is currently owned by institutional investors.

About Chewy

Chewy, Inc is an e-commerce company focused on pet products and services. Through its website and mobile platforms, the company sells pet food, treats, toys, supplies, and accessories for dogs, cats, fish, birds, reptiles, and other household pets.

Chewy also offers pet medications and veterinary-related products through its online pharmacy, as well as services such as Autoship subscriptions, which allow customers to schedule recurring deliveries. Its assortment includes national brands and private-label products, and the company emphasizes customer service, convenience, and personalized recommendations.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated as an online pet-food retailer before expanding into a broader pet-commerce platform.