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

Chewy (NYSE:CHWY) was the recipient of unusually large options trading on Tuesday. Investors purchased 25,713 call options on the stock. This represents an increase of 36% compared to the average volume of 18,917 call options.

Insider Buying and Selling at Chewy

In related news, CEO Sumit Singh sold 83,306 shares of the firm’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $25.60, for a total transaction of $2,132,633.60. Following the transaction, the chief executive officer directly owned 874,061 shares in the company, valued at $22,375,961.60. This trade represents a 8.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Da-Wai Hu sold 8,149 shares of the firm’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total value of $219,289.59. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,675 shares of company stock worth $2,459,955 over the last 90 days. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CHWY. CoreCap Advisors LLC increased its holdings in shares of Chewy by 306.3% during the fourth quarter. CoreCap Advisors LLC now owns 845 shares of the company’s stock valued at $28,000 after purchasing an additional 637 shares during the period. Harbour Investments Inc. increased 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 purchasing 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. Los Angeles Capital Management LLC acquired a new position in shares of Chewy during the fourth quarter valued at $31,000. Finally, Modus Advisors LLC acquired a new position in shares of Chewy during the fourth quarter valued at $34,000. 93.09% of the stock is owned by institutional investors and hedge funds.

Chewy Stock Up 1.2%

Chewy stock opened at $20.39 on Wednesday. The firm has a 50-day moving average price of $23.91 and a two-hundred day moving average price of $27.71. The firm has a market capitalization of $8.50 billion, a price-to-earnings ratio of 39.21, a PEG ratio of 0.89 and a beta of 1.44. Chewy has a 52-week low of $19.30 and a 52-week high of $46.35.

Chewy (NYSE:CHWY) last posted its earnings results on Wednesday, March 25th. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.19). The firm had revenue of $3.26 billion for the quarter, compared to analyst estimates of $3.26 billion. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.28 earnings per share. Research analysts expect that Chewy will post 0.87 earnings per share for the current year.

Wall Street Analyst Weigh In

CHWY has been the topic of several research analyst reports. Citigroup reduced their price objective on Chewy from $40.00 to $37.00 and set a “buy” rating on the stock in a research note on Tuesday, May 12th. Weiss Ratings upgraded Chewy from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday. Wall Street Zen cut Chewy from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Argus upgraded Chewy to a “strong-buy” rating in a research note on Tuesday, April 7th. Finally, Guggenheim restated a “buy” rating and set a $45.00 price objective on shares of Chewy in a research note on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $41.24.

Key Stories Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Analyst sentiment remains supportive: William Blair’s Dylan Carden reiterated a Buy rating, arguing Chewy’s shares are undervalued and that the company has structural margin upside and long-term free cash flow potential. Article Title
• Positive Sentiment: Options activity was unusually heavy, with traders buying more than 25,000 call options, which can signal speculation that CHWY could move higher around earnings.
• Neutral Sentiment: Multiple previews note that Chewy is set to report before the market open, making the upcoming earnings release the main near-term catalyst for the stock. Article Title
• Neutral Sentiment: Coverage also highlights investor debate over Chewy’s valuation, AI spending, and veterinary clinic expansion, suggesting the market is waiting to see whether those investments can drive better growth and margins. Article Title
• Negative Sentiment: The stock has fallen sharply over the past year, and recent commentary says Chewy was “mashed” in May after CEO comments sounded cautious about consumer demand, reinforcing worries about near-term growth. Article Title
• Negative Sentiment: Wall Street has been cutting price targets ahead of earnings, reflecting lower confidence that CHWY will quickly reaccelerate. Article Title

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.