Chewy (NYSE:CHWY) Upgraded to Strong-Buy at Barclays

Chewy (NYSE:CHWY) was upgraded by research analysts at Barclays to a “strong-buy” rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other brokerages also recently commented on CHWY. Bank of America lowered their target price on shares of Chewy from $33.00 to $31.00 in a report on Thursday. The Goldman Sachs Group lowered their target price on shares of Chewy from $46.00 to $34.00 and set a “buy” rating for the company in a report on Friday. Citigroup reiterated a “market outperform” rating on shares of Chewy in a report on Thursday. Robert W. Baird lowered their target price on shares of Chewy from $40.00 to $30.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Wedbush lowered their target price on shares of Chewy from $42.00 to $36.00 and set an “outperform” rating for the company in a report on Thursday, March 26th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $32.05.

Chewy Price Performance

Shares of NYSE CHWY opened at $19.30 on Thursday. The stock has a market capitalization of $8.04 billion, a P/E ratio of 32.16, a P/E/G ratio of 0.87 and a beta of 1.44. The company has a 50-day moving average price of $23.48 and a 200-day moving average price of $27.46. Chewy has a 1 year low of $18.22 and a 1 year high of $43.84.

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. The firm had revenue of $3.36 billion during the quarter, compared to analysts’ expectations of $3.35 billion. Chewy had a net margin of 1.99% and a return on equity of 60.02%. The business’s revenue was up 9.7% on a year-over-year basis. During the same period last year, the company earned $0.35 earnings per share. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. As a group, equities research analysts anticipate that Chewy will post 0.87 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Sumit Singh sold 4,220 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $108,032.00. Following the sale, the chief executive officer owned 123,955 shares of the company’s stock, valued at $3,173,248. The trade was a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 business’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total transaction of $219,289.59. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 95,675 shares of company stock worth $2,459,955. Insiders own 0.34% of the company’s stock.

Institutional Trading of Chewy

Several hedge funds and other institutional investors have recently modified their holdings of CHWY. Wellington Management Group LLP raised its position in shares of Chewy by 295.9% in the third 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 period. Viking Global Investors LP raised its position in shares of Chewy by 146.9% in the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock valued at $447,386,000 after purchasing an additional 8,052,955 shares during the period. AQR Capital Management LLC raised its position in shares of 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 purchasing an additional 5,564,803 shares during the period. Norges Bank bought a new stake in shares of Chewy in the fourth quarter valued at approximately $154,647,000. Finally, State Street Corp raised its position in shares of 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 purchasing an additional 2,654,496 shares during the period. Institutional investors own 93.09% of the company’s stock.

Key Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy’s Autoship subscription program continued to grow faster than overall sales in Q1, supporting recurring revenue, customer retention, and visibility into future cash flow. Chewy’s Autoship Business Continues to Drive Recurring Revenue Growth
• Positive Sentiment: Several analysts still see upside despite trimming price targets, and Citi reiterated a Buy rating while saying valuation has compressed enough to leave room for recovery. Chewy: Buy Rating Reiterated as Analyst Cuts Price Target to $31 but Sees Significant Upside from Compressed Valuation
• Positive Sentiment: Chewy’s Q1 results showed revenue growth and margin expansion, and management kept profitability guidance intact even as it lowered the sales outlook. Chewy Q1 Earnings Meet Estimates, Sales Beat on Autoship Strength

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.