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

Chewy (NYSE:CHWY) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports.

Other equities research analysts have also issued research reports about the company. UBS Group lowered their target price on Chewy from $32.00 to $24.00 and set a “neutral” rating for the company in a research note on Thursday, June 11th. Robert W. Baird reduced their price target on Chewy from $40.00 to $30.00 and set an “outperform” rating on the stock in a research report on Thursday, June 11th. Guggenheim restated a “buy” rating and issued a $45.00 price target on shares of Chewy in a report on Monday, April 27th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $23.00 price objective on shares of Chewy in a research report on Thursday, June 11th. Finally, Piper Sandler set a $30.00 price objective on shares of Chewy in a research note on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Chewy has a consensus rating of “Moderate Buy” and a consensus target price of $32.05.

Chewy Stock Up 2.2%

CHWY opened at $18.53 on Thursday. Chewy has a 52-week low of $17.40 and a 52-week high of $43.63. The company has a 50 day moving average of $21.91 and a two-hundred day moving average of $26.38. The company has a market cap 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 issued its earnings results on Wednesday, June 10th. The company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.19. Chewy had a net margin of 1.99% and a return on equity of 60.02%. The business had revenue of $3.36 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter last year, the firm posted $0.35 EPS. The business’s revenue for the quarter was up 9.7% compared to the same quarter last year. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. Research analysts anticipate that Chewy will post 0.8 earnings per share for the current year.

Insider Activity

In other news, CEO Sumit Singh sold 4,220 shares of the company’s stock in a transaction dated Monday, May 4th. The shares were 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 in the company, valued at approximately $3,173,248. This represents a 3.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed 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 stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total transaction of $219,289.59. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,675 shares of company stock valued at $2,459,955 in the last three months. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of CHWY. Pacer Advisors Inc. grew its position in shares of Chewy by 7.4% in the 1st quarter. Pacer Advisors Inc. now owns 36,244 shares of the company’s stock worth $979,000 after acquiring an additional 2,510 shares in the last quarter. Militia Capital Management LLC acquired a new stake in shares of Chewy during the 1st quarter valued at approximately $871,000. Parallel Advisors LLC raised its position in shares of Chewy by 106.8% during the 1st quarter. Parallel Advisors LLC now owns 1,584 shares of the company’s stock valued at $43,000 after acquiring an additional 818 shares in the last quarter. NewEdge Advisors LLC lifted its stake in Chewy by 171.6% during the first quarter. NewEdge Advisors LLC now owns 18,855 shares of the company’s stock worth $509,000 after purchasing an additional 11,913 shares during the last quarter. Finally, Honeycomb Asset Management LP bought a new position in Chewy during the first quarter worth $4,725,000. Institutional investors own 93.09% of the company’s stock.

About Chewy

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.