Chewy (NYSE:CHWY) Shares Gap Down After Insider Selling

Chewy, Inc. (NYSE:CHWY)’s stock price gapped down before the market opened on Wednesday after an insider sold shares in the company. 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.

Specifically, CTO Satish Mehta sold 8,056 shares of the stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $33.47, for a total value of $269,634.32. Following the sale, the chief technology officer now directly owns 585,962 shares in the company, valued at $19,612,148.14. This represents a 1.36 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on CHWY. Needham & Company LLC restated a “hold” rating on shares of Chewy in a research report on Thursday. Deutsche Bank Aktiengesellschaft increased 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. increased their price target on shares of Chewy from $37.00 to $38.00 and gave the stock an “overweight” rating in a research note on Thursday. Evercore ISI increased their price target 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. Finally, Citigroup raised shares of Chewy from a “neutral” rating to a “buy” rating and increased their price target for the stock from $28.00 to $40.00 in a research note on Friday, November 8th. Nine analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. Based on data from MarketBeat.com, Chewy presently has an average rating of “Moderate Buy” and an average price target of $34.15.

Chewy Trading Down 7.2 %

The company has a market capitalization of $12.99 billion, a P/E ratio of 37.88, a P/E/G ratio of 3.15 and a beta of 1.12. The business’s 50-day simple moving average is $30.42 and its 200 day simple moving average is $27.06.

Chewy (NYSE:CHWY) last released its earnings results on Wednesday, December 4th. The company reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.05 by $0.15. Chewy had a net margin of 3.20% and a return on equity of 21.00%. 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 previous year, the firm earned ($0.08) EPS. The business’s revenue for the quarter was up 5.2% on a year-over-year basis. As a group, sell-side analysts predict that Chewy, Inc. will post 0.33 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BC Partners Advisors L.P. acquired a new position in shares of Chewy during the 2nd quarter worth $7,517,800,000. FMR LLC lifted its holdings in shares of Chewy by 166.8% during the 3rd quarter. FMR LLC now owns 3,995,329 shares of the company’s stock worth $117,023,000 after acquiring an additional 2,497,689 shares during the period. Bank of New York Mellon Corp increased its position in shares of Chewy by 7.8% during the 2nd quarter. Bank of New York Mellon Corp now owns 3,553,104 shares of the company’s stock worth $96,787,000 after purchasing an additional 258,502 shares in the last quarter. Marshall Wace LLP increased its position in shares of Chewy by 1,028.6% during the 2nd quarter. Marshall Wace LLP now owns 2,892,841 shares of the company’s stock worth $78,801,000 after purchasing an additional 2,636,526 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC increased its position in Chewy by 5.3% in the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 2,765,931 shares of the company’s stock valued at $81,014,000 after acquiring an additional 138,768 shares in the last quarter. 93.09% of the stock is owned by hedge funds and other institutional investors.

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.