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

Chewy, Inc. (NYSE:CHWY) shares were 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.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on CHWY shares. Needham & Company LLC reiterated a “hold” rating on shares of Chewy in a research note on Thursday, December 5th. JMP Securities reaffirmed a “market outperform” rating and set a $37.00 price objective on shares of Chewy in a research note on Monday, December 16th. Piper Sandler raised their price target on shares of Chewy from $35.00 to $40.00 and gave the company an “overweight” rating in a report on Monday, December 2nd. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Chewy from $24.00 to $28.00 and gave the company a “hold” rating in a research report on Friday, November 22nd. Finally, Citigroup upgraded Chewy from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $28.00 to $40.00 in a research report on Friday, November 8th. Five research 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.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $37.30.

Chewy Stock Down 4.8 %

The firm has a market cap of $13.92 billion, a PE ratio of 37.37, a price-to-earnings-growth ratio of 2.21 and a beta of 1.10. The business has a 50 day simple moving average of $36.73 and a two-hundred day simple moving average of $32.44.

Chewy (NYSE:CHWY) last issued its earnings results on Wednesday, December 4th. The company reported $0.20 earnings per share (EPS) for the quarter, topping 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 company had revenue of $2.89 billion for the quarter, compared to analysts’ expectations of $2.86 billion. During the same period in the prior year, the business earned ($0.08) EPS. The firm’s quarterly revenue was up 5.2% on a year-over-year basis. Equities analysts forecast that Chewy, Inc. will post 0.24 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Argos Holdings Gp Llc sold 19,827,242 shares of the business’s stock in a transaction dated Friday, December 13th. The shares were sold at an average price of $31.32, for a total transaction of $620,989,219.44. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO David Reeder sold 307,558 shares of the 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 completion of the sale, the chief financial officer now directly owns 546,257 shares of the company’s stock, valued at approximately $20,473,712.36. This represents a 36.02 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 28,553,371 shares of company stock worth $933,605,214. 2.10% of the stock is owned by corporate insiders.

Institutional Trading of Chewy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Eagle Asset Management Inc. lifted its holdings in Chewy by 97.9% during the 3rd quarter. Eagle Asset Management Inc. now owns 1,972,136 shares of the company’s stock worth $60,485,000 after buying an additional 975,647 shares in the last quarter. Centiva Capital LP purchased a new position in Chewy in the third quarter worth approximately $2,949,000. Geode Capital Management LLC raised its holdings in shares of Chewy by 8.4% in the 3rd quarter. Geode Capital Management LLC now owns 1,550,844 shares of the company’s stock valued at $45,443,000 after purchasing an additional 119,633 shares in the last quarter. Birch Hill Investment Advisors LLC purchased a new position in Chewy in the fourth quarter valued at $1,174,000. Finally, Simplify Asset Management Inc. acquired a new position in shares of Chewy during the 3rd quarter worth about $5,379,000. Hedge funds and other institutional investors own 93.09% of the company’s stock.

About Chewy

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.