Investors Purchase Large Volume of Put Options on Chewy (NYSE:CHWY)

Chewy (NYSE:CHWY) was the recipient of unusually large options trading activity on Monday. Traders purchased 22,581 put options on the company. This is an increase of 39% compared to the average volume of 16,300 put options.

Analysts Set New Price Targets

A number of research analysts recently weighed in on CHWY shares. Morgan Stanley dropped their price target on shares of Chewy from $51.00 to $50.00 and set an “overweight” rating on the stock in a research report on Tuesday, March 10th. UBS Group set a $51.00 price objective on shares of Chewy in a research note on Tuesday, January 13th. Citigroup reissued a “market outperform” rating on shares of Chewy in a research report on Monday, November 24th. The Goldman Sachs Group boosted their target price on Chewy from $44.00 to $52.00 and gave the stock a “buy” rating in a research note on Thursday, December 11th. Finally, Barclays reduced their target price on Chewy from $52.00 to $48.00 and set an “overweight” rating for the company in a report on Thursday, March 5th. Seventeen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $45.55.

Insider Transactions at Chewy

In other news, CTO Satish Mehta sold 13,013 shares of the company’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 completion of the sale, the chief technology officer owned 273,835 shares in the company, valued at $7,938,476.65. This represents a 4.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Chewy

Several institutional investors have recently added to or reduced their stakes in CHWY. Vanguard Group Inc. increased its stake in shares of Chewy by 5.4% in the fourth 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 in the last quarter. Wellington Management Group LLP lifted its stake in shares of Chewy by 295.9% during the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock valued at $712,841,000 after buying an additional 13,171,325 shares in the last quarter. Viking Global Investors LP boosted its holdings in Chewy by 146.9% in the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after buying an additional 8,052,955 shares during the period. AQR Capital Management LLC boosted its holdings in Chewy by 10.0% in the 4th quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company’s stock worth $370,558,000 after buying an additional 1,022,694 shares during the period. Finally, Morgan Stanley grew its stake in Chewy by 33.8% in the 4th 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 in the last quarter. 93.09% of the stock is owned by hedge funds and other institutional investors.

Chewy Price Performance

Shares of CHWY opened at $23.62 on Tuesday. Chewy has a 1 year low of $23.06 and a 1 year high of $48.62. The stock’s fifty day moving average price is $27.50 and its two-hundred day moving average price is $32.51. The firm has a market cap of $9.80 billion, a PE ratio of 49.20, a PEG ratio of 1.58 and a beta of 1.60.

Key Stories Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Analyst / retail commentary suggests Chewy may be undervalued relative to its growth potential, arguing the stock could rebound if fundamentals meet expectations. Should You Buy Chewy Stock Before March 25?
• Positive Sentiment: Celebrity/brand tie-ins and exclusive product collaborations (e.g., a co-branded promotion) can drive traffic and PR; a recent partnership announcement underscores merchandising and marketing momentum. Junk Ball and Big League Chew Team Up for a Flavor-Packed Play Experience
• Positive Sentiment: Influential investor/media commentary remains supportive—Jim Cramer reiterated he’s long viewed Chewy favorably, calling it “a good company,” which can bolster investor confidence despite recent underperformance. Jim Cramer on Chewy , Inc.: “It Is a Good Company, But it’s Been a Bad Stock”
• Neutral Sentiment: Market watchers flag Chewy’s upcoming Q4 results as the key near-term catalyst; previews outline what to watch on revenue, margins, and guidance, making earnings the immediate driver of direction. Chewy (CHWY) Is About to Report Q4 Earnings. Here Is What to Expect
• Neutral Sentiment: Broker and market roundups list Chewy among names to watch this week due to macro headlines and economic data—contextual rather than company-specific impact. Gamestop, Carnival, Chewy, Jefferies, and More to Watch This Week
• Neutral Sentiment: Product features and merchandising stories (e.g., spotlight on a popular cat tree) generate modest retail interest but are unlikely to move the stock materially by themselves. Chewy is selling a darling corner cat tree in lovely green and blue shades
• Negative Sentiment: Unusual options activity: traders bought ~22,581 put contracts (roughly +39% vs. typical), signaling increased bearish bets and concern ahead of earnings—this raises near-term downside risk if results disappoint.
• Negative Sentiment: Analyses are reassessing Chewy’s valuation after recent share-price weakness and multi-period declines, reinforcing investor caution and pressure on the stock until a clear recovery catalyst appears. Reassessing Chewy (CHWY) Valuation After Recent Share Price Weakness

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.