Wall Street Zen Upgrades Chewy (NYSE:CHWY) to “Buy”

Chewy (NYSE:CHWY) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

CHWY has been the subject of several other reports. Needham & Company LLC reiterated a “hold” rating on shares of Chewy in a research note on Thursday, December 11th. Citigroup reaffirmed a “market outperform” rating on shares of Chewy in a report on Monday, November 24th. Weiss Ratings reissued a “hold (c)” rating on shares of Chewy in a report on Wednesday, January 21st. Piper Sandler restated an “overweight” rating on shares of Chewy in a research report on Thursday, February 5th. Finally, Wedbush set a $42.00 price objective on shares of Chewy and gave the stock an “outperform” rating in a research report on Wednesday, December 10th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $47.21.

Chewy Stock Performance

CHWY opened at $24.24 on Friday. The stock has a fifty day moving average of $31.42 and a 200-day moving average of $34.98. Chewy has a fifty-two week low of $24.01 and a fifty-two week high of $48.62. The company has a market capitalization of $10.06 billion, a P/E ratio of 50.50, a P/E/G ratio of 1.64 and a beta of 1.59.

Chewy (NYSE:CHWY) last issued its quarterly earnings data on Wednesday, December 10th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.01. Chewy had a net margin of 1.64% and a return on equity of 56.78%. The business had revenue of $3.12 billion during the quarter, compared to analysts’ expectations of $3.10 billion. During the same quarter in the previous year, the company earned $0.20 EPS. The business’s revenue was up 8.1% on a year-over-year basis. Chewy has set its Q4 2025 guidance at 0.240-0.270 EPS. On average, equities research analysts predict that Chewy will post 0.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Satish Mehta sold 13,013 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $28.99, for a total value of $377,246.87. Following the sale, the chief technology officer owned 273,835 shares of the company’s stock, valued at $7,938,476.65. The trade was a 4.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Sumit Singh sold 40,789 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $33.73, for a total value of $1,375,812.97. Following the transaction, the chief executive officer directly owned 623,185 shares of the company’s stock, valued at approximately $21,020,030.05. This represents a 6.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 69,369 shares of company stock worth $2,276,360. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Chewy

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in Chewy by 5.4% during the 4th quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company’s stock worth $658,367,000 after purchasing an additional 1,017,214 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Chewy by 295.9% during the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock worth $712,841,000 after buying an additional 13,171,325 shares during the period. AQR Capital Management LLC raised its stake in Chewy by 120.2% during the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock worth $407,948,000 after buying an additional 5,564,803 shares during the last quarter. Morgan Stanley lifted its holdings in Chewy by 33.8% in the fourth quarter. Morgan Stanley now owns 7,660,258 shares of the company’s stock valued at $253,172,000 after buying an additional 1,937,014 shares during the period. Finally, Invesco Ltd. boosted its position in Chewy by 34.7% during the second quarter. Invesco Ltd. now owns 7,187,518 shares of the company’s stock valued at $306,332,000 after acquiring an additional 1,852,531 shares during the last quarter. 93.09% of the stock is currently owned by institutional investors.

Chewy Company Profile

Chewy, Inc (NYSE: CHWY) is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.