Chewy (NYSE:CHWY) Shares Down 8.7% – Here’s What Happened

Chewy (NYSE:CHWY) shares traded down 8.7% on Tuesday . The company traded as low as $20.03 and last traded at $19.7490. 7,775,030 shares traded hands during trading, a decline of 4% from the average session volume of 8,136,091 shares. The stock had previously closed at $21.63.

Key Headlines Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Negative Sentiment: Chewy’s conference appearance highlighted a more cautious tone on consumer spending, raising concerns that demand trends and order growth could soften in the near term. Chewy slides nearly 8% as cautious consumer tone pressures shares at investor conference
• Negative Sentiment: The stock also hit a new 52-week low, which can trigger additional technical selling and risk reduction from momentum-oriented traders. Chewy Stock Is Hit New 52-Week Low On Tuesday – Here’s Why
• Negative Sentiment: Recent analyst discussion remains in focus, with Citigroup among the firms referenced as investors reassess the outlook ahead of Chewy’s next earnings report in June. Chewy Stock Is Hit New 52-Week Low On Tuesday – Here’s Why
• Neutral Sentiment: Chewy presented at the J.P. Morgan 54th Annual Global Technology, Media and Communications Conference, keeping management commentary and the company’s outlook in the spotlight. Chewy, Inc. (CHWY) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Neutral Sentiment: Chewy continues to be highlighted by some strategists as a GARP name and as a company expanding its premium/value product mix, which supports the longer-term investment case. Add These 4 GARP Stocks to Your Portfolio to Receive Handsome Returns
• Positive Sentiment: Analyst and strategic commentary around Chewy’s premium-and-value mix suggests the company is trying to broaden its addressable market and improve margins over time. Chewy’s Premium & Value Mix Strategy Expands Its Addressable Market

Analyst Ratings Changes

A number of brokerages recently weighed in on CHWY. Piper Sandler reissued an “overweight” rating on shares of Chewy in a research note on Thursday, February 5th. The Goldman Sachs Group reduced their price objective on Chewy from $52.00 to $46.00 and set a “buy” rating for the company in a research report on Thursday, March 26th. Barclays reduced their price objective on Chewy from $52.00 to $48.00 and set an “overweight” rating for the company in a research report on Thursday, March 5th. Royal Bank Of Canada increased their price objective on Chewy from $43.00 to $47.00 and gave the company an “outperform” rating in a research report on Monday, March 30th. Finally, Argus raised Chewy to a “strong-buy” rating in a research report on Tuesday, April 7th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $42.77.

Chewy Trading Down 8.2%

The company has a market cap of $8.27 billion, a price-to-earnings ratio of 38.14, a price-to-earnings-growth ratio of 0.92 and a beta of 1.50. The company has a fifty day moving average price of $25.27 and a two-hundred day moving average price of $29.15.

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

Insider Buying and Selling at Chewy

In related news, CEO Sumit Singh sold 4,220 shares of the business’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $25.60, for a total value of $108,032.00. Following the sale, the chief executive officer owned 123,955 shares of the company’s stock, valued at $3,173,248. The trade was a 3.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 business’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 95,675 shares of company stock worth $2,459,955. 0.43% of the stock is owned by insiders.

Hedge Funds Weigh In On Chewy

A number of institutional investors and hedge funds have recently bought and sold shares of CHWY. Wellington Management Group LLP boosted its stake in Chewy by 295.9% in the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock worth $712,841,000 after purchasing an additional 13,171,325 shares in the last quarter. Viking Global Investors LP boosted its stake in Chewy by 146.9% in the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after purchasing an additional 8,052,955 shares in the last quarter. AQR Capital Management LLC boosted its stake in Chewy by 120.2% in the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock worth $407,948,000 after purchasing an additional 5,564,803 shares in the last quarter. Norges Bank acquired a new position in Chewy in the fourth quarter worth $154,647,000. Finally, State Street Corp boosted its stake in Chewy by 75.5% in the second quarter. State Street Corp now owns 6,170,197 shares of the company’s stock worth $262,974,000 after purchasing an additional 2,654,496 shares in the last quarter. 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.