Chewy Target of Unusually Large Options Trading (NYSE:CHWY)

Chewy (NYSE:CHWY) was the target of unusually large options trading activity on Wednesday. Stock investors bought 57,315 call options on the stock. This is an increase of approximately 231% compared to the average volume of 17,329 call options.

More Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Q4 results and upbeat 2026 outlook — Chewy reported higher profit, revenue roughly in line with expectations and gave a confident full‑year outlook that emphasizes margin expansion and free‑cash‑flow growth, which drove the stock rally. Chewy Announces Fiscal Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Margin and cash‑flow improvement — Research/coverage highlights expanding EBITDA and free‑cash‑flow margins (FCF up ~48% to $232M), supporting the thesis that Chewy is converting revenue into stronger profitability. Chewy: Expanding Margin Profile
• Positive Sentiment: AI and efficiency tailwinds — Analysts and commentary point to AI‑driven cost savings and technology upgrades that should sustainably lift margins over the coming years, supporting investor optimism about profit leverage. Why Chewy Stock Rallied Today
• Positive Sentiment: Management messaging — CEO Sumit Singh’s interview and the earnings call underscored Autoship strength, product mix gains and a path to higher margins, which reassured investors. Watch CNBC’s full interview with Chewy CEO Sumit Singh
• Neutral Sentiment: Unusual options and trading flows amplified the move — Heavy call buying and elevated option volume suggest event‑driven positioning and possible short‑covering contributed to the intraday pop beyond fundamentals. Chewy Sees Unusually Large Options Volume (NYSE:CHWY)
• Neutral Sentiment: Analyst support — Some firms reiterated or raised bullish views (upgrades/Buy ratings and attractive valuation commentary), which likely helped momentum but consensus targets remain dispersed. Chewy: This Is What A Mispriced Growth Stock Looks Like (Upgrade)
• Negative Sentiment: Near‑term execution risks and prior weakness — the stock had traded to a 52‑week low before earnings, and Q4 GAAP/non‑GAAP EPS was effectively flat to a penny shy of some estimates; continued pressure on top‑line growth or execution could weigh on the shares. Chewy stock hits 52-week low

Insider Activity at Chewy

In related news, CTO Satish Mehta sold 13,013 shares of Chewy stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $28.99, for a total value of $377,246.87. Following the completion of the transaction, the chief technology officer directly owned 273,835 shares in the company, valued at approximately $7,938,476.65. This trade represents a 4.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.43% of the company’s stock.

Institutional Trading of Chewy

Several hedge funds have recently made changes to their positions in the stock. Quent Capital LLC bought a new position in Chewy during the 3rd quarter worth $27,000. CoreCap Advisors LLC lifted its stake in Chewy by 306.3% in the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company’s stock valued at $28,000 after buying an additional 637 shares during the last quarter. Harbour Investments Inc. boosted its holdings in shares of Chewy by 81.4% during the fourth quarter. Harbour Investments Inc. now owns 907 shares of the company’s stock valued at $30,000 after acquiring an additional 407 shares during the period. Osterweis Capital Management Inc. acquired a new position in shares of Chewy during the second quarter valued at $30,000. Finally, Los Angeles Capital Management LLC bought a new position in shares of Chewy during the fourth quarter worth about $31,000. Institutional investors own 93.09% of the company’s stock.

Chewy Stock Up 13.1%

CHWY opened at $26.51 on Thursday. The company’s 50-day moving average price is $27.19 and its 200 day moving average price is $32.34. Chewy has a fifty-two week low of $22.74 and a fifty-two week high of $48.62. The firm has a market cap of $11.00 billion, a price-to-earnings ratio of 55.23, a price-to-earnings-growth ratio of 1.59 and a beta of 1.60.

Analyst Upgrades and Downgrades

CHWY has been the topic of several research reports. The Goldman Sachs Group upped their price objective on Chewy from $44.00 to $52.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of Chewy in a report on Wednesday, January 21st. Wall Street Zen raised Chewy from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. Morgan Stanley reduced their price objective on Chewy from $51.00 to $50.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 10th. Finally, TD Cowen decreased their price objective on shares of Chewy from $48.00 to $39.00 and set a “buy” rating for the company in a report on Tuesday, March 10th. Seventeen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $45.55.

About Chewy

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.