Chewy (NYSE:CHWY) Trading Up 3.1% on Earnings Beat

Chewy, Inc. (NYSE:CHWY) shares were up 3.1% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $42.06 and last traded at $42.03. Approximately 1,161,383 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 6,915,408 shares. The stock had previously closed at $40.76.

The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.01. The business had revenue of $3.12 billion for the quarter, compared to analyst estimates of $3.08 billion. Chewy had a net margin of 3.51% and a return on equity of 24.47%. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.31 EPS.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on CHWY shares. Jefferies Financial Group reiterated a “hold” rating and set a $43.00 price objective (up previously from $41.00) on shares of Chewy in a research note on Thursday, June 5th. JPMorgan Chase & Co. increased their price objective on shares of Chewy from $36.00 to $47.00 and gave the stock an “overweight” rating in a research note on Thursday. Deutsche Bank Aktiengesellschaft set a $27.00 price objective on shares of Chewy and gave the stock a “hold” rating in a research note on Monday, April 14th. Needham & Company LLC restated a “hold” rating on shares of Chewy in a research report on Thursday. Finally, The Goldman Sachs Group upped their target price on shares of Chewy from $40.00 to $45.00 and gave the stock a “buy” rating in a research report on Thursday, March 27th. Eight investment analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $43.72.

Insiders Place Their Bets

In other news, CEO Sumit Singh sold 148,063 shares of the stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $40.67, for a total transaction of $6,021,722.21. Following the transaction, the chief executive officer now owns 705,252 shares in the company, valued at $28,682,598.84. This represents a 17.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO David Reeder sold 11,582 shares of the stock in a transaction on Monday, May 5th. The stock was sold at an average price of $36.44, for a total transaction of $422,048.08. Following the transaction, the chief financial officer now owns 397,556 shares in the company, valued at approximately $14,486,940.64. This trade represents a 2.83% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 236,046 shares of company stock worth $9,387,635 in the last quarter. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CHWY. Liberty One Investment Management LLC grew its position in Chewy by 4.7% in the 1st quarter. Liberty One Investment Management LLC now owns 7,051 shares of the company’s stock worth $229,000 after purchasing an additional 314 shares during the last quarter. North Star Investment Management Corp. grew its position in Chewy by 26.6% in the 1st quarter. North Star Investment Management Corp. now owns 1,678 shares of the company’s stock worth $55,000 after purchasing an additional 353 shares during the last quarter. Federated Hermes Inc. grew its position in Chewy by 2.3% in the 1st quarter. Federated Hermes Inc. now owns 15,685 shares of the company’s stock worth $510,000 after purchasing an additional 354 shares during the last quarter. Park Avenue Securities LLC grew its position in Chewy by 5.3% in the 1st quarter. Park Avenue Securities LLC now owns 7,281 shares of the company’s stock worth $237,000 after purchasing an additional 364 shares during the last quarter. Finally, Signaturefd LLC grew its position in Chewy by 14.6% in the 1st quarter. Signaturefd LLC now owns 3,420 shares of the company’s stock worth $111,000 after purchasing an additional 436 shares during the last quarter. 93.09% of the stock is currently owned by institutional investors and hedge funds.

Chewy Stock Performance

The firm’s 50-day simple moving average is $39.63 and its 200-day simple moving average is $36.58. The company has a market capitalization of $17.06 billion, a price-to-earnings ratio of 45.32, a price-to-earnings-growth ratio of 2.21 and a beta of 1.75.

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.