Chewy, Inc.: $11.32B Market Cap, 63.1% QTD Stock Rise

Quick Overview:

Chewy, Inc., a leading e-commerce company in the United States, specialises in delivering a wide range of pet-related products and services. The company’s extensive catalogue includes pet food, treats, supplies, medications, and various pet health products. Chewy caters to diverse pets, such as dogs, cats, fish, birds, small pets, horses, and reptiles. Leveraging retail websites and mobile applications, Chewy has established a robust platform that simplifies the shopping experience for pet owners across the country.

Chewy Stock at $25.92 with a 63.1% QTD Increase

Chewy’s stock is currently priced at $25.92. The highest of $27.08 today positioned it favourably for a potential record close in 2024. The stock experienced a significant uptrend following its earnings report in late May, maintaining strong support at the $22 level and achieving a 63.1% increase quarter-to-date. This marks the highest level for the stock since August 2023. Short interest in Chewy has decreased by 21.3% in recent reporting periods, leaving 14.2% of the company’s available float shorted.

Options trading activity today included 157,000 call options and 72,000 put options, with the most active options being the June 25 call and the 22.50 put. The 10-day call/put volume ratio is 4.56, indicating a bullish sentiment. Additionally, the stock’s low volatility is reflected by an SVI of 17%.

Analysts Set $28 Price Target on Chewy Stock

A total of 24 analysts cover Chewy, with nine offering ratings of “hold” or worse. Analysts have set varying price targets for Chewy’s stock, with JPMorgan Chase & Co., Wedbush, and Morgan Stanley all rating it as “overweight” and setting a target price of $28.00. Piper Sandler has a more neutral stance with a $22.00 target, while Mizuho is also neutral with a $20.00 target. The overall consensus among analysts is a moderate buy, with an average target price of $26.31.

CEO and CTO Sell Over 68,000 Shares Worth $1M+

Insider trading activities have been notable, with CTO Satish Mehta selling 8,019 shares at $15.12 on May 2 and CEO Sumit Singh selling 6,728 shares at $15.53 on April 2. In total, insiders have sold 68,862 shares worth $1,047,242 in the past three months.

Institutional investors have shown increased interest in Chewy, with Baillie Gifford & Co. upping their stake by 7.2% to 19,819,195 shares and Vanguard Group Inc. increasing their holdings by 9.1% to 10,480,230 shares. Massachusetts Financial Services Co. MA has initiated a new position valued at $42,223,000, while Mitsubishi UFJ Trust & Banking Corp has raised its stake by 127.8% to 1,717,660 shares. Qube Research & Technologies Ltd has also significantly increased its position by 141.2%, now holding 1,188,823 shares.

Financial Metrics: $11.32B Cap, 144.56 P/E Ratio

Chewy boasts a market capitalisation of $11.32 billion, a price-to-earnings ratio of 144.56, and a PEG ratio of 3.67. The company’s beta is 0.99, indicating a volatility level on par with the market. The stock’s 50-day and 200-day moving averages are $18.15 and $18.53, respectively. Over the past year, Chewy’s stock has ranged from a low of $14.69 to a high of $40.22.

In its latest earnings report on May 29, Chewy reported an EPS of $0.15, significantly surpassing the consensus estimate of $0.04. The company also reported revenues of $2.88 billion, exceeding expectations of $2.85 billion. With a return on equity of 16.62% and a net margin of 0.73%, Chewy demonstrates solid financial health. The expected EPS for 2024 is projected at 0.2.

Surpassing Estimates: $0.15 EPS, $2.88B Revenue

Several major financial institutions have recently updated their price targets and ratings for Chewy. JPMorgan Chase & Co., Wedbush, and Morgan Stanley have all issued heavy ratings with a new price target of $28.00. Piper Sandler has provided a “neutral” rating with a target of $22.00, and Mizuho has also given a “neutral” rating with a $20.00 target. Collectively, the stock has one “sell,” seven “hold,” and thirteen “buy” ratings, culminating in an average rating of moderate buy and an average target price of $26.31.

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