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

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

Analyst Upgrades and Downgrades

CHWY has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Chewy from $24.00 to $28.00 and gave the stock a "hold" rating in a research note on Friday, November 22nd. JPMorgan Chase & Co. boosted their price objective on shares of Chewy from $37.00 to $38.00 and gave the company an "overweight" rating in a report on Thursday, December 5th. The Goldman Sachs Group boosted their price objective on shares of Chewy from $35.00 to $40.00 and gave the company a "buy" rating in a report on Thursday, December 5th. Needham & Company LLC restated a "hold" rating on shares of Chewy in a report on Thursday, December 5th. Finally, UBS Group boosted their price objective on shares of Chewy from $30.00 to $34.00 and gave the company a "neutral" rating in a report on Tuesday, December 3rd. Five investment analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company's stock. According to data from MarketBeat, Chewy currently has a consensus rating of "Moderate Buy" and a consensus target price of $37.30.

Chewy Price Performance

The company has a market capitalization of $13.58 billion, a P/E ratio of 36.66, a price-to-earnings-growth ratio of 2.21 and a beta of 1.23. The company's 50-day moving average price is $36.76 and its two-hundred day moving average price is $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 EPS for the quarter, beating the consensus estimate of $0.05 by $0.15. Chewy had a net margin of 3.51% and a return on equity of 24.47%. The business had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.86 billion. During the same period in the prior year, the company posted ($0.08) earnings per share. Chewy's revenue was up 5.2% compared to the same quarter last year. On average, analysts anticipate that Chewy, Inc. will post 0.24 earnings per share for the current fiscal year.

Insider Activity at Chewy

In other news, CFO David Reeder sold 307,558 shares of the firm's stock in a transaction that occurred on Friday, February 7th. The shares were sold at an average price of $37.48, for a total value of $11,527,273.84. Following the sale, the chief financial officer now directly owns 546,257 shares in the company, valued at approximately $20,473,712.36. This trade represents a 36.02 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Argos Holdings Gp Llc sold 19,827,242 shares of the firm's stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $31.32, for a total transaction of $620,989,219.44. The disclosure for this sale can be found here. Over the last three months, insiders have sold 28,553,371 shares of company stock worth $933,605,214. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Chewy

Hedge funds have recently made changes to their positions in the stock. Integrated Advisors Network LLC bought a new position in Chewy during the 4th quarter worth approximately $235,000. Polar Asset Management Partners Inc. grew its holdings in Chewy by 26.5% in the fourth quarter. Polar Asset Management Partners Inc. now owns 288,733 shares of the company's stock worth $9,670,000 after purchasing an additional 60,533 shares during the period. Mackenzie Financial Corp bought a new position in shares of Chewy during the 4th quarter worth about $318,000. Gordian Capital Singapore Pte Ltd acquired a new stake in shares of Chewy in the 4th quarter valued at about $67,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Chewy by 22.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 291,837 shares of the company's stock valued at $9,774,000 after buying an additional 54,381 shares during the period. 93.09% of the stock is currently owned by institutional investors and hedge funds.

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.