Chewy (NYSE:CHWY) Lowered to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Chewy (NYSE:CHWY) from a hold rating to a strong sell rating in a research report sent to investors on Thursday,Zacks.com reports.

Other analysts have also recently issued research reports about the stock. Moffett Nathanson set a $28.00 target price on shares of Chewy in a research note on Thursday, June 11th. Mizuho decreased their price target on shares of Chewy from $50.00 to $40.00 and set an “outperform” rating on the stock in a research note on Wednesday, June 3rd. TD Cowen reissued a “buy” rating on shares of Chewy in a report on Tuesday. Citigroup restated a “market outperform” rating on shares of Chewy in a research report on Thursday, June 11th. Finally, Wedbush reduced their price objective on Chewy from $42.00 to $36.00 and set an “outperform” rating for the company in a report on Thursday, March 26th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Chewy presently has an average rating of “Moderate Buy” and an average price target of $32.05.

Chewy Trading Up 2.2%

CHWY opened at $18.53 on Thursday. Chewy has a 1-year low of $17.40 and a 1-year high of $43.63. The stock’s fifty day simple moving average is $21.91 and its 200 day simple moving average is $26.38. The stock has a market cap of $7.59 billion, a PE ratio of 30.89, a price-to-earnings-growth ratio of 0.91 and a beta of 1.44.

Chewy (NYSE:CHWY) last announced its quarterly earnings results on Wednesday, June 10th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.19. Chewy had a return on equity of 60.02% and a net margin of 1.99%.The business had revenue of $3.36 billion during the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter last year, the firm posted $0.35 EPS. The company’s quarterly revenue was up 9.7% on a year-over-year basis. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. Equities analysts forecast that Chewy will post 0.8 earnings per share for the current year.

Insider Transactions at Chewy

In other Chewy news, General Counsel Da-Wai Hu sold 8,149 shares of the 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 sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sumit Singh sold 83,306 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $25.60, for a total transaction of $2,132,633.60. Following the transaction, the chief executive officer directly owned 874,061 shares in the company, valued at $22,375,961.60. This represents a 8.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders have sold 95,675 shares of company stock worth $2,459,955. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On Chewy

Several institutional investors have recently made changes to their positions in CHWY. Wellington Management Group LLP raised its holdings in Chewy by 295.9% in the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock valued at $712,841,000 after acquiring an additional 13,171,325 shares in the last quarter. Viking Global Investors LP grew its holdings in shares of Chewy by 146.9% during the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after purchasing an additional 8,052,955 shares in the last quarter. AQR Capital Management LLC increased its position in shares of Chewy by 120.2% in the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock worth $407,948,000 after purchasing an additional 5,564,803 shares during the period. Norges Bank bought a new position in shares of Chewy in the fourth quarter worth $154,647,000. Finally, State Street Corp raised its stake in Chewy by 75.5% in the second quarter. State Street Corp now owns 6,170,197 shares of the company’s stock valued at $262,974,000 after purchasing an additional 2,654,496 shares in the last quarter. 93.09% of the stock is currently owned by institutional investors.

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.