Morgan Stanley Has Lowered Expectations for Chewy (NYSE:CHWY) Stock Price

Chewy (NYSE:CHWY) had its target price cut by Morgan Stanley from $51.00 to $50.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Morgan Stanley’s price objective points to a potential upside of 93.27% from the company’s current price.

Several other research analysts have also recently commented on the stock. Citigroup restated a “market outperform” rating on shares of Chewy in a research report on Monday, November 24th. TD Cowen lowered their target price on shares of Chewy from $48.00 to $39.00 and set a “buy” rating on the stock in a research note on Tuesday. Weiss Ratings restated a “hold (c)” rating on shares of Chewy in a research report on Wednesday, January 21st. Barclays decreased their price objective on shares of Chewy from $52.00 to $48.00 and set an “overweight” rating for the company in a report on Thursday, March 5th. Finally, Raymond James Financial upgraded Chewy from a “market perform” rating to an “outperform” rating and set a $28.00 price objective for the company in a report on Thursday, February 19th. Seventeen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $45.55.

Chewy Price Performance

Shares of NYSE CHWY traded down $0.28 during mid-day trading on Tuesday, hitting $25.87. The company had a trading volume of 4,411,087 shares, compared to its average volume of 8,128,689. Chewy has a 12 month low of $23.06 and a 12 month high of $48.62. The stock has a market cap of $10.74 billion, a price-to-earnings ratio of 53.88, a PEG ratio of 1.71 and a beta of 1.60. The firm’s 50 day simple moving average is $29.08 and its two-hundred day simple moving average is $33.63.

Chewy (NYSE:CHWY) last issued its quarterly earnings data on Wednesday, December 10th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.01. The firm had revenue of $3.12 billion during the quarter, compared to the consensus estimate of $3.10 billion. Chewy had a return on equity of 56.78% and a net margin of 1.64%.The firm’s revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.20 EPS. Chewy has set its Q4 2025 guidance at 0.240-0.270 EPS. Equities analysts forecast that Chewy will post 0.24 earnings per share for the current year.

Insider Buying and Selling at Chewy

In related news, CTO Satish Mehta sold 13,013 shares of Chewy stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $28.99, for a total value of $377,246.87. Following the transaction, the chief technology officer directly owned 273,835 shares in the company, valued at $7,938,476.65. The trade was a 4.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Chewy

A number of hedge funds and other institutional investors have recently modified their holdings of CHWY. Winslow Asset Management Inc. acquired a new stake in shares of Chewy during the third quarter valued at approximately $6,171,000. Nordea Investment Management AB acquired a new position in Chewy in the 3rd quarter worth approximately $6,967,000. Federated Hermes Inc. grew its position in Chewy by 2,715.2% during the 3rd quarter. Federated Hermes Inc. now owns 664,079 shares of the company’s stock worth $26,862,000 after purchasing an additional 640,490 shares in the last quarter. CWM LLC grew its position in Chewy by 8,785.0% during the 3rd quarter. CWM LLC now owns 284,499 shares of the company’s stock worth $11,508,000 after purchasing an additional 281,297 shares in the last quarter. Finally, Intech Investment Management LLC raised its stake in Chewy by 218.6% during the 3rd quarter. Intech Investment Management LLC now owns 173,300 shares of the company’s stock valued at $7,010,000 after purchasing an additional 118,903 shares during the period. Institutional investors and hedge funds 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.