Chewy (NYSE:CHWY) Sets New 1-Year Low – Here’s Why

Chewy (NYSE:CHWY) reached a new 52-week low on Thursday . The company traded as low as $21.40 and last traded at $21.6550, with a volume of 9938805 shares trading hands. The stock had previously closed at $22.90.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on CHWY shares. TD Cowen lifted their price target on shares of Chewy from $39.00 to $42.00 and gave the company a “buy” rating in a research report on Thursday, March 26th. Raymond James Financial upgraded shares of Chewy from a “market perform” rating to an “outperform” rating and set a $28.00 price target for the company in a research report on Thursday, February 19th. Piper Sandler reiterated an “overweight” rating on shares of Chewy in a research report on Thursday, February 5th. Wall Street Zen downgraded shares of Chewy from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Finally, JPMorgan Chase & Co. dropped their price target on shares of Chewy from $46.00 to $40.00 and set an “overweight” rating for the company in a research report on Thursday, March 26th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Chewy currently has an average rating of “Moderate Buy” and an average price target of $42.77.

Chewy Price Performance

The firm has a market capitalization of $9.02 billion, a price-to-earnings ratio of 41.65, a P/E/G ratio of 0.99 and a beta of 1.50. The firm’s 50-day simple moving average is $25.55 and its 200 day simple moving average is $29.42.

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

Insider Activity at Chewy

In other Chewy news, CEO Sumit Singh sold 83,306 shares of the business’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 directly owned 874,061 shares in the company, valued at $22,375,961.60. The trade was a 8.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total transaction of $219,289.59. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 95,675 shares of company stock valued at $2,459,955. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CHWY. Wellington Management Group LLP increased its holdings in shares of Chewy by 295.9% during the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock worth $712,841,000 after buying an additional 13,171,325 shares in the last quarter. Viking Global Investors LP increased its holdings in shares of Chewy by 146.9% during the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after buying an additional 8,052,955 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Chewy by 120.2% during the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock worth $407,948,000 after buying an additional 5,564,803 shares in the last quarter. Norges Bank acquired a new position in shares of Chewy during the fourth quarter worth $154,647,000. Finally, State Street Corp increased its holdings in shares of Chewy by 75.5% during the second quarter. State Street Corp now owns 6,170,197 shares of the company’s stock worth $262,974,000 after buying an additional 2,654,496 shares in the last quarter. 93.09% of the stock is currently owned by institutional investors and hedge funds.

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.