Chewy (NYSE:CHWY) Shares Down 10.3% – Here’s What Happened

Chewy, Inc. (NYSE:CHWY)’s share price fell 10.3% on Tuesday . The stock traded as low as $32.90 and last traded at $32.20. 1,278,957 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 4,550,236 shares. The stock had previously closed at $35.90.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. BNP Paribas cut shares of Chewy from an “outperform” rating to a “neutral” rating in a research note on Thursday, December 5th. Morgan Stanley boosted their price objective on shares of Chewy from $38.00 to $40.00 and gave the company an “overweight” rating in a research note on Monday, January 13th. Mizuho raised Chewy from a “neutral” rating to an “outperform” rating and lifted their price objective for the company from $24.00 to $42.00 in a report on Monday, January 6th. Wedbush restated an “outperform” rating and issued a $39.00 price target (up from $35.00) on shares of Chewy in a research note on Thursday, December 5th. Finally, Bank of America upgraded shares of Chewy from an “underperform” rating to a “buy” rating and increased their price target for the company from $24.00 to $40.00 in a report on Wednesday, November 20th. Five investment analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $37.30.

Chewy Trading Down 4.8 %

The firm has a market capitalization of $13.92 billion, a P/E ratio of 37.37, a P/E/G ratio of 2.21 and a beta of 1.10. The business’s fifty day moving average is $36.73 and its 200 day moving average is $32.44.

Chewy (NYSE:CHWY) last released its earnings results on Wednesday, December 4th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.15. Chewy had a return on equity of 24.47% and a net margin of 3.51%. The company had revenue of $2.89 billion for the quarter, compared to analysts’ expectations of $2.86 billion. During the same quarter in the previous year, the business posted ($0.08) EPS. The business’s revenue for the quarter was up 5.2% on a year-over-year basis. As a group, sell-side analysts predict that Chewy, Inc. will post 0.24 earnings per share for the current fiscal year.

Insider Activity at Chewy

In other Chewy news, CEO Sumit Singh sold 9,285 shares of the stock in a transaction dated Thursday, January 30th. The shares were sold at an average price of $40.00, for a total transaction of $371,400.00. Following the sale, the chief executive officer now owns 489,750 shares of the company’s stock, valued at $19,590,000. This represents a 1.86 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Argos Holdings Gp Llc sold 19,827,242 shares of Chewy stock in a transaction on Friday, December 13th. The shares were sold at an average price of $31.32, for a total value of $620,989,219.44. The disclosure for this sale can be found here. Insiders sold a total of 28,553,371 shares of company stock worth $933,605,214 in the last ninety days. 2.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Chewy

Institutional investors have recently modified their holdings of the stock. Banque Transatlantique SA bought a new position in Chewy in the fourth quarter valued at approximately $30,000. Fifth Third Bancorp increased its position in shares of Chewy by 83.0% during the 4th quarter. Fifth Third Bancorp now owns 979 shares of the company’s stock worth $33,000 after purchasing an additional 444 shares during the last quarter. Blue Trust Inc. boosted its holdings in shares of Chewy by 22.9% in the 4th quarter. Blue Trust Inc. now owns 1,718 shares of the company’s stock valued at $58,000 after buying an additional 320 shares during the last quarter. Planning Capital Management Corp bought a new stake in shares of Chewy in the 3rd quarter valued at about $52,000. Finally, Allworth Financial LP lifted its stake in shares of Chewy by 52.0% during the 4th quarter. Allworth Financial LP now owns 1,900 shares of the company’s stock worth $71,000 after buying an additional 650 shares during the last quarter. 93.09% of the stock is currently owned by institutional investors and hedge funds.

Chewy Company Profile

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.