Chewy (NYSE:CHWY) Trading Down 10.3% - Should You Sell?

Chewy, Inc. (NYSE:CHWY - Get Free Report)'s share price was down 10.3% on Tuesday . The stock traded as low as $32.90 and last traded at $32.20. Approximately 1,278,957 shares were traded during mid-day trading, a decline of 72% from the average daily volume of 4,550,236 shares. The stock had previously closed at $35.90.

Analyst Ratings Changes

Several analysts have recently weighed in on CHWY shares. Deutsche Bank Aktiengesellschaft boosted their target price on Chewy from $24.00 to $28.00 and gave the company a "hold" rating in a report on Friday, November 22nd. Wedbush reissued an "outperform" rating and issued a $39.00 target price (up from $35.00) on shares of Chewy in a report on Thursday, December 5th. JPMorgan Chase & Co. boosted their price target on Chewy from $37.00 to $38.00 and gave the company an "overweight" rating in a research report on Thursday, December 5th. Mizuho upgraded Chewy from a "neutral" rating to an "outperform" rating and boosted their price target for the company from $24.00 to $42.00 in a research report on Monday, January 6th. Finally, Wolfe Research upgraded Chewy from a "peer perform" rating to an "outperform" rating in a research report on Friday, January 3rd. Five investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $37.30.

Chewy Stock Performance

The firm has a market cap of $13.58 billion, a price-to-earnings ratio of 36.66, a PEG ratio of 2.21 and a beta of 1.23. The business has a fifty day moving average of $36.76 and a two-hundred day moving average of $32.62.

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Chewy (NYSE:CHWY - Get Free Report) last released its quarterly earnings results on Wednesday, December 4th. The company reported $0.20 earnings per share for the quarter, topping analysts' consensus estimates of $0.05 by $0.15. The business had revenue of $2.89 billion for the quarter, compared to analysts' expectations of $2.86 billion. Chewy had a return on equity of 24.47% and a net margin of 3.51%. The company's revenue was up 5.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.08) EPS. On average, equities research analysts forecast that Chewy, Inc. will post 0.24 earnings per share for the current year.

Insider Buying and Selling

In related news, major shareholder Argos Holdings Gp Llc sold 19,827,242 shares of the company's stock in a transaction that occurred on Friday, December 13th. The stock was sold at an average price of $31.32, for a total value of $620,989,219.44. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Sumit Singh sold 71,161 shares of the company's stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $32.50, for a total value of $2,312,732.50. Following the completion of the sale, the chief executive officer now directly owns 77,838 shares in the company, valued at approximately $2,529,735. The trade was a 47.76 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 28,553,371 shares of company stock worth $933,605,214 in the last quarter. Company insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Chewy

Institutional investors and hedge funds have recently bought and sold shares of the stock. Janney Montgomery Scott LLC lifted its stake in shares of Chewy by 281.7% during the 3rd quarter. Janney Montgomery Scott LLC now owns 38,398 shares of the company's stock worth $1,125,000 after purchasing an additional 28,337 shares during the period. Radnor Capital Management LLC purchased a new position in shares of Chewy during the 3rd quarter worth $442,000. Principal Financial Group Inc. lifted its stake in shares of Chewy by 0.7% during the 3rd quarter. Principal Financial Group Inc. now owns 531,709 shares of the company's stock worth $15,574,000 after purchasing an additional 3,814 shares during the period. Washington Trust Advisors Inc. lifted its stake in shares of Chewy by 0.3% during the 3rd quarter. Washington Trust Advisors Inc. now owns 278,452 shares of the company's stock worth $8,156,000 after purchasing an additional 923 shares during the period. Finally, Assetmark Inc. lifted its stake in shares of Chewy by 29.0% during the 3rd quarter. Assetmark Inc. now owns 59,593 shares of the company's stock worth $1,745,000 after purchasing an additional 13,395 shares during the period. Hedge funds and other institutional investors own 93.09% of the company's stock.

Chewy Company Profile

Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications.