Chewy (NYSE:CHWY) Stock Rating Lowered by Zacks Research

Chewy (NYSE:CHWY) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

Other equities analysts have also issued research reports about the stock. Raymond James Financial raised shares of Chewy from a “market perform” rating to an “outperform” rating and set a $28.00 price objective for the company in a research report on Thursday, February 19th. Guggenheim reissued a “buy” rating and issued a $45.00 price objective on shares of Chewy in a research report on Monday, April 27th. Weiss Ratings lowered shares of Chewy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, May 19th. Barclays dropped their price target on shares of Chewy from $48.00 to $40.00 and set an “overweight” rating for the company in a research report on Tuesday. Finally, The Goldman Sachs Group dropped their price target on shares of Chewy from $52.00 to $46.00 and set a “buy” rating for the company in a research report on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Chewy presently has a consensus rating of “Moderate Buy” and an average target price of $42.14.

Chewy Price Performance

NYSE:CHWY opened at $21.28 on Monday. The firm has a 50 day simple moving average of $24.66 and a 200-day simple moving average of $28.59. The firm has a market cap of $8.87 billion, a PE ratio of 40.92, a P/E/G ratio of 0.90 and a beta of 1.50. Chewy has a 1-year low of $19.30 and a 1-year high of $48.62.

Chewy (NYSE:CHWY) last posted its quarterly earnings data on Wednesday, March 25th. The company reported $0.09 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.19). The firm 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%. The business’s quarterly revenue was up .5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.28 EPS. As a group, sell-side analysts expect that Chewy will post 0.89 earnings per share for the current fiscal year.

Insider Activity at Chewy

In related news, CEO Sumit Singh sold 83,306 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $2,132,633.60. Following the completion of the transaction, the chief executive officer owned 874,061 shares of the company’s stock, valued at approximately $22,375,961.60. This represents a 8.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible 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 company’s stock in a transaction that occurred on 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 have sold 95,675 shares of company stock valued at $2,459,955 in the last ninety days. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Chewy

Several large investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Chewy by 5.4% in the fourth quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company’s stock worth $658,367,000 after acquiring an additional 1,017,214 shares in the last quarter. Wellington Management Group LLP increased its position in shares of 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 acquiring an additional 13,171,325 shares in the last quarter. Viking Global Investors LP increased its position in shares of 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 acquiring an additional 8,052,955 shares in the last quarter. AQR Capital Management LLC increased its position in shares of Chewy by 10.0% in the fourth quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company’s stock worth $370,558,000 after acquiring an additional 1,022,694 shares in the last quarter. Finally, Morgan Stanley increased its position in shares of Chewy by 33.8% in the fourth quarter. Morgan Stanley now owns 7,660,258 shares of the company’s stock worth $253,172,000 after acquiring an additional 1,937,014 shares in the last quarter. Institutional investors and hedge funds own 93.09% of the company’s stock.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy’s debt-free balance sheet, record free cash flow, and rising liquidity give it room to fund growth investments and potential buybacks. Chewy’s Capital Strength Provides Flexibility for Growth Investments
• Positive Sentiment: Analysts pointed to Chewy’s Autoship strength, AI initiatives, and veterinary expansion as growth drivers versus Petco. Chewy vs. Petco: Which Pet-Care Stock Looks Better Positioned?
• Positive Sentiment: Wall Street commentary remained broadly constructive on Chewy’s long-term outlook, with some analysts still viewing the stock as a buy. Is Chewy (CHWY) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Chewy’s shares also outperformed the broader market in the latest session, closing higher amid a modest rebound in the stock. Chewy (CHWY) Beats Stock Market Upswing: What Investors Need to Know
• Negative Sentiment: Morgan Stanley lowered its price target on Chewy to $43 from $49, signaling less upside than before even while keeping an overweight rating. Morgan Stanley price target cut
• Negative Sentiment: Zacks Research downgraded Chewy from strong-buy to hold, adding to the cautious tone around the stock. Zacks downgrade
• Negative Sentiment: Morgan Stanley also warned Chewy may need to lower the high end of full-year sales guidance due to weakening pet-industry trends. Chewy Likely to Lower High End of Sales Guidance Amid Weakening Pet Industry Trends, Morgan Stanley Says

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.