Chewy (NYSE:CHWY) Price Target Cut to $42.00 by Analysts at Morgan Stanley

Chewy (NYSE:CHWY) had its price target decreased by stock analysts at Morgan Stanley from $43.00 to $42.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley’s price target indicates a potential upside of 122.95% from the stock’s current price.

Several other equities analysts also recently issued reports on the stock. Citizens Jmp cut their price target on shares of Chewy from $48.00 to $45.00 and set a “market outperform” rating for the company in a report on Thursday, March 26th. Zacks Research lowered shares of Chewy from a “strong-buy” rating to a “hold” rating in a report on Monday, May 25th. Guggenheim reiterated a “buy” rating and issued a $45.00 target price on shares of Chewy in a research note on Monday, April 27th. Weiss Ratings raised Chewy from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, June 5th. Finally, TD Cowen increased their price target on Chewy from $39.00 to $42.00 and gave the stock a “buy” rating in a research report on Thursday, March 26th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $35.86.

Chewy Price Performance

Shares of NYSE:CHWY opened at $18.84 on Thursday. The business’s fifty day moving average price is $23.80 and its two-hundred day moving average price is $27.62. Chewy has a fifty-two week low of $19.08 and a fifty-two week high of $43.84. The stock has a market capitalization of $7.85 billion, a price-to-earnings ratio of 36.45, a price-to-earnings-growth ratio of 0.91 and a beta of 1.44.

Chewy (NYSE:CHWY) last issued its quarterly earnings data on Wednesday, June 10th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.19. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The company had revenue of $3.36 billion during the quarter, compared to analysts’ expectations of $3.35 billion. During the same period last year, the business earned $0.35 earnings per share. The business’s revenue was up 9.7% on a year-over-year basis. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. Research analysts expect that Chewy will post 0.87 EPS for the current fiscal year.

Insider Buying and Selling at Chewy

In other news, General Counsel Da-Wai Hu sold 8,149 shares of the company’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.91, for a total transaction of $219,289.59. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Sumit Singh sold 4,220 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $108,032.00. Following the completion of the transaction, the chief executive officer owned 123,955 shares in the company, valued at approximately $3,173,248. This represents a 3.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders sold a total of 95,675 shares of company stock valued at $2,459,955 over the last three months. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP boosted its stake in shares of Chewy by 295.9% in the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock valued at $712,841,000 after purchasing an additional 13,171,325 shares during the last quarter. Viking Global Investors LP raised its stake in shares of Chewy by 146.9% during the fourth 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 last quarter. AQR Capital Management LLC lifted its holdings in Chewy by 120.2% in the third quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock valued at $407,948,000 after buying an additional 5,564,803 shares during the period. Norges Bank acquired a new position in Chewy in the fourth quarter valued at approximately $154,647,000. Finally, State Street Corp boosted its stake in Chewy by 75.5% in the second quarter. State Street Corp now owns 6,170,197 shares of the company’s stock valued at $262,974,000 after acquiring an additional 2,654,496 shares during the last quarter. 93.09% of the stock is currently owned by institutional investors and hedge funds.

More Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported Q1 net sales of $3.36 billion, up 7.7% year over year, with adjusted EPS of $0.43 topping expectations and gross margin expanding to 30.1%, showing the business remains profitable and resilient.
• Positive Sentiment: Several analysts stayed constructive, including William Blair, J.P. Morgan, Raymond James, and Evercore, citing margin discipline, cash flow, and long-term growth drivers. Article Title
• Neutral Sentiment: Chewy outlined fiscal 2026 net sales of $13.40 billion to $13.55 billion and said it is targeting net leverage below 2x adjusted EBITDA, reinforcing a focus on balance-sheet discipline. Article Title
• Neutral Sentiment: Robert W. Baird lowered its price target to $30 from $40 while keeping an outperform rating, and Needham reiterated a Hold, reflecting a mixed but not uniformly bearish analyst response. Article Title
• Negative Sentiment: Management cut its full-year sales forecast and flagged a more cautious consumer environment, which is the main reason investors are selling the stock despite the earnings beat.
• Negative Sentiment: Commentary around the report also noted macroeconomic pressure and growth concerns, with shares hitting 52-week lows as Wall Street worries about demand for discretionary pet spending. Article Title

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.