Chewy (NYSE:CHWY) Trading 6.1% Higher – What’s Next?

Chewy (NYSE:CHWY) shot up 6.1% during mid-day trading on Monday . The company traded as high as $21.51 and last traded at $21.6850. 1,993,724 shares were traded during trading, a decline of 77% from the average session volume of 8,519,829 shares. The stock had previously closed at $20.44.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Q2 earnings call highlighted profitable growth. Chewy emphasized continued revenue expansion, improving profitability and execution across its core pet-commerce business. Its Autoship subscription program remains a major retention and recurring-revenue advantage. Chewy Inc Earnings Call Highlights Profitable Growth
• Positive Sentiment: AI investments could support margins. Chewy is applying artificial intelligence in customer care, pharmacy and operations, with potential productivity gains and cost savings that could expand margins over time. Chewy Leverages AI for Productivity Gains and Margin Expansion
• Positive Sentiment: Wall Street sentiment remains favorable. Analyst views cited in recent coverage are broadly bullish, while comparisons with CAVA and TJX highlight Chewy’s strong position in online pet retail and the attractive retention economics of its subscription model. Wall Street Bullish Views on Chewy
• Neutral Sentiment: Recent investor attention has increased. Chewy’s presentation at the Goldman Sachs Global Consumer and Retail Conference provided additional visibility into its strategy, but the transcript did not introduce a major new catalyst. Chewy Goldman Sachs Conference Transcript
• Negative Sentiment: Technical momentum remains weak. Shares are still substantially below their 12-month high and below both the 50-day and 200-day moving averages. Coverage also noted that CHWY remains down sharply for the year, which may keep investors cautious despite improving fundamentals. Did Chewy Stock Just Find a Bottom?

Wall Street Analyst Weigh In

A number of research firms have recently commented on CHWY. Robert W. Baird dropped their price objective on Chewy from $30.00 to $28.00 and set an “outperform” rating on the stock in a research note on Thursday, September 10th. Jefferies Financial Group reaffirmed a “hold” rating and set a $23.00 target price on shares of Chewy in a research note on Thursday, June 11th. Barclays lowered their target price on Chewy from $40.00 to $36.00 and set an “overweight” rating on the stock in a report on Thursday, June 11th. Needham & Company LLC reiterated a “hold” rating on shares of Chewy in a research report on Thursday, September 10th. Finally, Rosenblatt Securities dropped their price target on shares of Chewy from $25.00 to $24.00 and set a “neutral” rating on the stock in a research report on Thursday, September 10th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Chewy currently has an average rating of “Moderate Buy” and an average target price of $30.64.

Chewy Stock Performance

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 stock has a market cap of $8.68 billion, a price-to-earnings ratio of 32.14, a price-to-earnings-growth ratio of 0.88 and a beta of 1.42. The company’s 50-day simple moving average is $22.44 and its 200-day simple moving average is $22.99.

Chewy (NYSE:CHWY) last announced 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 the consensus estimate of $3.32 billion. Chewy had a return on equity of 60.88% and a net margin of 2.09%.The company’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.33 EPS. Analysts predict that Chewy will post 0.77 EPS for the current fiscal year.

Insider Activity

In other news, General Counsel Da-Wai Hu sold 4,203 shares of the company’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $19.49, for a total transaction of $81,916.47. Following the completion of the sale, the general counsel directly owned 4,103 shares of the company’s stock, valued at $79,967.47. This represents a 50.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.34% of the stock is owned by company insiders.

Institutional Trading of Chewy

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new position in shares of Chewy in the fourth quarter worth about $154,647,000. Geode Capital Management LLC raised its holdings in shares of Chewy by 3.4% during the fourth quarter. Geode Capital Management LLC now owns 4,432,257 shares of the company’s stock valued at $146,515,000 after acquiring an additional 145,539 shares during the period. Bank of New York Mellon Corp raised its holdings in shares of Chewy by 17.4% during the fourth quarter. Bank of New York Mellon Corp now owns 4,336,629 shares of the company’s stock valued at $143,326,000 after acquiring an additional 642,584 shares during the period. Bank of America Corp DE lifted its position in shares of Chewy by 12.7% in the 1st 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. Finally, Fiera Capital Corp lifted its position in shares of Chewy by 32.9% in the 4th quarter. Fiera Capital Corp now owns 2,020,384 shares of the company’s stock valued at $66,774,000 after acquiring an additional 499,941 shares in the last quarter. Institutional investors and hedge funds own 93.09% of the company’s stock.

Chewy Company Profile

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

Chewy supports recurring purchases through its Autoship program and provides access to prescription and over-the-counter pet medications through Chewy Pharmacy. The company also offers pet health-related services, including veterinary consultations in certain markets, and sells products under a range of national and private-label brands.