Chewy (NYSE:CHWY) Shares Up 5% – Should You Buy?

Chewy (NYSE:CHWY)’s stock price rose 5% during trading on Wednesday. The company traded as high as $20.62 and last traded at $20.6930. Approximately 4,934,780 shares were traded during trading, a decline of 43% from the average daily volume of 8,655,528 shares. The stock had previously closed at $19.71.

Wall Street Analyst Weigh In

CHWY has been the subject of several recent research reports. Needham & Company LLC reissued a “hold” rating on shares of Chewy in a research report on Thursday, September 10th. TD Cowen dropped their price objective on Chewy from $34.00 to $32.00 and set a “buy” rating for the company in a research note on Thursday, September 10th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $28.00 price target on shares of Chewy in a report on Thursday, September 10th. Morgan Stanley lowered their price target on shares of Chewy from $37.00 to $36.00 and set an “overweight” rating for the company in a research report on Thursday, September 10th. Finally, Citigroup reissued a “market outperform” rating on shares of Chewy in a research report on Thursday, September 10th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Chewy currently has an average rating of “Moderate Buy” and an average price target of $30.45.

Chewy Stock Performance

The company has a debt-to-equity ratio of 1.59, a current ratio of 0.84 and a quick ratio of 0.42. The stock has a 50-day moving average price of $21.28 and a 200-day moving average price of $22.01. The company has a market capitalization of $8.55 billion, a price-to-earnings ratio of 32.23, a PEG ratio of 0.87 and a beta of 1.38.

Chewy (NYSE:CHWY) last released its quarterly earnings data on Wednesday, September 9th. The company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.18 by $0.18. The firm had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.32 billion. Chewy had a net margin of 2.09% and a return on equity of 60.88%. The company’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.33 earnings per share. As a group, analysts forecast that Chewy will post 0.76 earnings per share for the current year.

Institutional Trading of Chewy

Several institutional investors have recently added to or reduced their stakes in CHWY. SG Americas Securities LLC boosted its position in shares of Chewy by 764.8% in the first quarter. SG Americas Securities LLC now owns 2,213,220 shares of the company’s stock valued at $59,757,000 after acquiring an additional 1,957,284 shares during the period. Amundi raised its stake in Chewy by 191.8% in the 1st quarter. Amundi now owns 1,466,126 shares of the company’s stock worth $39,584,000 after purchasing an additional 963,750 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Chewy by 49.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,739,267 shares of the company’s stock valued at $46,942,000 after purchasing an additional 578,801 shares during the period. Bank of America Corp DE boosted its holdings in Chewy by 12.7% in the 1st quarter. Bank of America Corp DE now owns 4,816,924 shares of the company’s stock valued at $130,057,000 after purchasing an additional 542,298 shares during the period. Finally, Senvest Management LLC bought a new stake in Chewy in the 1st quarter valued at about $11,070,000. 93.09% of the stock is currently owned by institutional investors.

Chewy Company Profile

Chewy, Inc is an e-commerce company focused on pet products and services. Through its website and mobile application, the company sells food, treats, toys, supplies, accessories and other products for dogs, cats, fish, birds, reptiles and small pets.

The company also offers prescription and over-the-counter medications through Chewy Pharmacy, as well as pet health products and related services. Its Autoship program allows customers to schedule recurring deliveries of regularly purchased items, while customer support and other digital features are designed to support pet owners throughout the pet-care lifecycle.

Chewy was founded in 2011 by Ryan Cohen and Michael Day and was acquired by PetSmart in 2017.