Chewy (NYSE:CHWY) Shares Gap Up After Earnings Beat

Chewy (NYSE:CHWY)’s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $34.84, but opened at $37.20. Chewy shares last traded at $35.3650, with a volume of 9,405,080 shares changing hands.

The company reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.17). Chewy had a net margin of 1.22% and a return on equity of 50.45%. The company had revenue of $3.12 billion during the quarter, compared to the consensus estimate of $3.10 billion. During the same period in the previous year, the firm posted $0.20 EPS. The business’s quarterly revenue was up 8.1% compared to the same quarter last year. Chewy has set its Q4 2025 guidance at 0.240-0.270 EPS.

Analysts Set New Price Targets

A number of research firms have issued reports on CHWY. JPMorgan Chase & Co. lowered their target price on Chewy from $47.00 to $45.00 and set an “overweight” rating for the company in a report on Thursday, September 11th. Mizuho reaffirmed an “outperform” rating and issued a $50.00 target price on shares of Chewy in a report on Tuesday, November 4th. Piper Sandler reaffirmed an “overweight” rating and set a $48.00 price objective on shares of Chewy in a research report on Tuesday, December 2nd. Needham & Company LLC reiterated a “hold” rating on shares of Chewy in a research note on Thursday, September 11th. Finally, Wedbush set a $42.00 price objective on shares of Chewy and gave the company an “outperform” rating in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Chewy presently has an average rating of “Moderate Buy” and a consensus price target of $46.00.

Insider Buying and Selling at Chewy

In related news, CEO Sumit Singh sold 40,789 shares of Chewy stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $33.73, for a total transaction of $1,375,812.97. Following the transaction, the chief executive officer owned 623,185 shares of the company’s stock, valued at $21,020,030.05. The trade was a 6.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CAO William G. Billings sold 1,121 shares of the company’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $32.72, for a total value of $36,679.12. Following the sale, the chief accounting officer owned 31,045 shares of the company’s stock, valued at $1,015,792.40. This trade represents a 3.49% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 83,985 shares of company stock worth $2,802,809. 0.43% of the stock is owned by corporate insiders.

Institutional Trading of Chewy

Several institutional investors and hedge funds have recently made changes to their positions in CHWY. Quent Capital LLC bought a new stake in Chewy in the 3rd quarter worth about $27,000. Osterweis Capital Management Inc. purchased a new position in shares of Chewy in the 2nd quarter worth approximately $30,000. Princeton Global Asset Management LLC bought a new position in shares of Chewy in the third quarter valued at approximately $40,000. Strategic Advocates LLC bought a new position in shares of Chewy in the third quarter valued at approximately $43,000. Finally, EverSource Wealth Advisors LLC increased its position in shares of Chewy by 412.2% during the second quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company’s stock valued at $46,000 after acquiring an additional 878 shares during the last quarter. Hedge funds and other institutional investors own 93.09% of the company’s stock.

Chewy Price Performance

The stock has a fifty day moving average of $35.15 and a 200 day moving average of $38.39. The firm has a market capitalization of $14.64 billion, a P/E ratio of 100.86, a price-to-earnings-growth ratio of 8.49 and a beta of 1.58.

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.