Chewy (NYSE:CHWY) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Chewy, Inc. (NYSE:CHWY) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $33.61, but opened at $34.45. Chewy shares last traded at $33.04, with a volume of 6,614,334 shares trading hands.

The company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.25. Chewy had a return on equity of 24.47% and a net margin of 3.51%. The firm had revenue of $3.25 billion for the quarter, compared to the consensus estimate of $3.20 billion. During the same quarter in the previous year, the business earned $0.07 earnings per share. The business’s revenue was up 15.0% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CHWY shares. Wolfe Research raised shares of Chewy from a “peer perform” rating to an “outperform” rating in a research report on Friday, January 3rd. JMP Securities reiterated a “market outperform” rating and issued a $37.00 price target on shares of Chewy in a research note on Monday, December 16th. Guggenheim set a $42.00 price objective on shares of Chewy and gave the stock a “buy” rating in a research report on Tuesday, February 4th. Argus raised Chewy from a “hold” rating to a “buy” rating in a research report on Thursday, January 23rd. Finally, The Goldman Sachs Group lifted their price target on Chewy from $40.00 to $45.00 and gave the stock a “buy” rating in a report on Thursday. Six investment analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $38.68.

Insider Activity at Chewy

In other Chewy news, major shareholder Argos Holdings Gp Llc sold 7,000,000 shares of the business’s stock in a transaction on Monday, January 6th. The shares were sold at an average price of $35.77, for a total transaction of $250,390,000.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Sumit Singh sold 63,187 shares of the firm’s stock in a transaction on Monday, January 6th. The shares were sold at an average price of $37.62, for a total value of $2,377,094.94. Following the sale, the chief executive officer now directly owns 643,939 shares in the company, valued at approximately $24,224,985.18. This trade represents a 8.94 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 8,083,269 shares of company stock valued at $290,611,129 over the last ninety days. 2.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC increased its position in Chewy by 1.5% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 19,741 shares of the company’s stock valued at $661,000 after acquiring an additional 301 shares during the period. Blue Trust Inc. raised its position in Chewy by 22.9% during the 4th quarter. Blue Trust Inc. now owns 1,718 shares of the company’s stock worth $58,000 after purchasing an additional 320 shares during the last quarter. Fifth Third Bancorp lifted its holdings in Chewy by 83.0% during the 4th quarter. Fifth Third Bancorp now owns 979 shares of the company’s stock worth $33,000 after buying an additional 444 shares during the period. PNC Financial Services Group Inc. grew its position in shares of Chewy by 8.7% in the 4th quarter. PNC Financial Services Group Inc. now owns 5,650 shares of the company’s stock valued at $189,000 after buying an additional 450 shares during the last quarter. Finally, Wilmington Savings Fund Society FSB increased its stake in shares of Chewy by 30.2% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 2,800 shares of the company’s stock valued at $94,000 after buying an additional 650 shares during the period. Institutional investors own 93.09% of the company’s stock.

Chewy Price Performance

The stock has a 50-day moving average price of $36.00 and a 200-day moving average price of $33.13. The company has a market capitalization of $13.31 billion, a P/E ratio of 35.91, a P/E/G ratio of 2.21 and a beta of 1.23.

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.