Chewy (NYSE:CHWY) Shares Gap Down – Time to Sell?

Chewy, Inc. (NYSE:CHWY) shares gapped down before the market opened on Wednesday . The stock had previously closed at $33.62, but opened at $30.81. Chewy shares last traded at $31.14, with a volume of 5,818,740 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on CHWY shares. TD Cowen assumed coverage on shares of Chewy in a research note on Wednesday, October 9th. They set a “buy” rating and a $38.00 target price for the company. Evercore ISI upped their price objective on shares of Chewy from $22.00 to $29.00 and gave the stock an “in-line” rating in a research note on Wednesday, August 28th. Morgan Stanley upped their price objective on shares of Chewy from $33.00 to $36.00 and gave the stock an “overweight” rating in a research note on Monday, November 25th. Bank of America raised shares of Chewy from an “underperform” rating to a “buy” rating and upped their price objective for the stock from $24.00 to $40.00 in a research note on Wednesday, November 20th. Finally, Piper Sandler upped their price objective on shares of Chewy from $35.00 to $40.00 and gave the stock an “overweight” rating in a research note on Monday. Eight investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $32.80.

Chewy Price Performance

The stock has a market cap of $13.91 billion, a price-to-earnings ratio of 37.35, a P/E/G ratio of 3.15 and a beta of 1.12. The company’s fifty day moving average price is $30.31 and its 200-day moving average price is $26.99.

Chewy (NYSE:CHWY) last issued its quarterly earnings results on Wednesday, December 4th. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.15. Chewy had a net margin of 3.20% and a return on equity of 21.00%. The company had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.86 billion. During the same quarter in the prior year, the company earned ($0.08) EPS. Chewy’s quarterly revenue was up 5.2% on a year-over-year basis. On average, sell-side analysts forecast that Chewy, Inc. will post 0.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder Argos Holdings Gp Llc sold 26,870,748 shares of the stock in a transaction that occurred on Monday, September 23rd. The stock was sold at an average price of $29.40, for a total transaction of $789,999,991.20. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 2.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. 1620 Investment Advisors Inc. purchased a new position in Chewy in the 2nd quarter valued at $33,000. Blue Trust Inc. lifted its holdings in Chewy by 183.6% in the 3rd quarter. Blue Trust Inc. now owns 1,398 shares of the company’s stock valued at $38,000 after purchasing an additional 905 shares in the last quarter. Industrial Alliance Investment Management Inc. purchased a new position in Chewy in the 2nd quarter valued at $44,000. First Horizon Advisors Inc. purchased a new position in Chewy in the 2nd quarter valued at $48,000. Finally, Skylands Capital LLC purchased a new position in Chewy in the 2nd quarter valued at $52,000. 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.