Chewy (NYSE:CHWY – Get Free Report)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $23.27, but opened at $21.85. Chewy shares last traded at $21.5460, with a volume of 3,727,690 shares changing hands.
Trending Headlines about Chewy
Here are the key news stories impacting Chewy this week:
- Positive Sentiment: Chewy reported second-quarter revenue of $3.33 billion, up 7.3% year over year and slightly above estimates. Adjusted EPS of $0.36 was approximately in line with expectations, while net income rose to $80.5 million. Chewy Announces Second Quarter 2026 Financial Results
- Positive Sentiment: Management raised its fiscal 2026 revenue outlook to $13.5 billion-$13.6 billion, above the roughly $12.8 billion consensus estimate, and increased its profitability outlook. Third-quarter revenue guidance of $3.3 billion-$3.4 billion was near or slightly above expectations.
- Positive Sentiment: Autoship sales reached approximately $2.82 billion, or 84.6% of revenue, and active customers increased 3.8% to 21.7 million. Management also cited market-share gains, AI-related cost savings and potential benefits from veterinary-care expansion. CHWY Q2 Earnings Meet Estimates
- Positive Sentiment: Several analysts maintained Buy or Outperform ratings despite trimming targets, including TD Cowen at $32, Bank of America at $27 and Citizens JMP at $28.
- Neutral Sentiment: RBC said Chewy is gaining share and has long-term acquisition opportunities, but category dynamics and the lack of a broad pet-market recovery limit the near-term catalyst path. Chewy Gaining Market Share
- Neutral Sentiment: Price targets were mixed: Baird reduced its target to $28 while retaining Outperform, and Rosenblatt cut its target to $24 with a Neutral rating. Needham reaffirmed Hold.
- Negative Sentiment: The post-earnings selloff reflects disappointment that the quarter did not deliver a major upside surprise. Investors were particularly concerned about free cash flow, which missed expectations, and lower liquidity following acquisition-related spending and financing. Chewy Shares Drop Despite Earnings Beat
- Negative Sentiment: Consumers are prioritizing pet necessities over discretionary items such as treats, while gross margin remained flat at 30.4%. Evercore ISI downgraded the stock, citing slowing organic growth and limited reasons to outperform.
- Negative Sentiment: Chewy trades near the lower end of its 12-month range and below its 50-day and 200-day moving averages, suggesting technical momentum remains weak.
Analyst Upgrades and Downgrades
A number of brokerages have commented on CHWY. Citigroup restated a “market outperform” rating on shares of Chewy in a report on Thursday. Barclays cut their price objective on shares of Chewy from $40.00 to $36.00 and set an “overweight” rating on the stock in a report on Thursday, June 11th. TD Cowen reduced their price target on shares of Chewy from $34.00 to $32.00 and set a “buy” rating for the company in a research report on Thursday. Zacks Research upgraded shares of Chewy from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 11th. Finally, UBS Group reaffirmed a “neutral” rating on shares of Chewy in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $31.05.
Chewy Stock Performance
The company has a current ratio of 0.84, a quick ratio of 0.35 and a debt-to-equity ratio of 1.59. The company has a market cap of $8.64 billion, a P/E ratio of 31.99, a PEG ratio of 0.83 and a beta of 1.42. The business’s 50 day simple moving average is $22.44 and its 200 day simple moving average is $23.09.
Chewy (NYSE:CHWY – Get Free Report) last posted its quarterly earnings results on Wednesday, September 9th. The company reported $0.36 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.18. Chewy had a net margin of 2.09% and a return on equity of 60.88%. The business had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.32 billion. During the same period in the prior year, the business posted $0.33 earnings per share. The company’s revenue was up 7.3% on a year-over-year basis. Sell-side analysts predict that Chewy will post 0.8 earnings per share for the current fiscal year.
Insiders Place Their Bets
In other Chewy news, General Counsel Da-Wai Hu sold 4,203 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $19.49, for a total transaction of $81,916.47. Following the completion of the sale, the general counsel directly owned 4,103 shares of the company’s stock, valued at $79,967.47. This trade represents a 50.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.34% of the stock is owned by insiders.
Hedge Funds Weigh In On Chewy
Several hedge funds have recently modified their holdings of the stock. Amundi increased its holdings in shares of 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 buying an additional 963,750 shares during the last quarter. ING Groep NV bought a new position in shares of Chewy in the 4th quarter valued at about $5,883,000. Jefferies Financial Group Inc. lifted its holdings in shares of Chewy by 550.3% in the 4th quarter. Jefferies Financial Group Inc. now owns 102,249 shares of the company’s stock valued at $3,379,000 after acquiring an additional 86,526 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S lifted its holdings in shares of Chewy by 392.9% in the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 275,612 shares of the company’s stock valued at $7,442,000 after acquiring an additional 219,696 shares during the last quarter. Finally, Bank of America Corp DE grew its position in Chewy by 12.7% in the first quarter. Bank of America Corp DE now owns 4,816,924 shares of the company’s stock worth $130,057,000 after acquiring an additional 542,298 shares in the last quarter. Hedge funds and other institutional investors own 93.09% of the company’s stock.
About Chewy
Chewy, Inc is an e-commerce company focused on pet products and services. Through its website and mobile applications, the company sells pet food, treats, supplies, toys, bedding, medications, and other products for dogs, cats, fish, birds, reptiles, and small pets.
Chewy supports recurring purchases through its Autoship program and provides access to prescription and over-the-counter pet medications through Chewy Pharmacy. The company also offers pet health-related services, including veterinary consultations in certain markets, and sells products under a range of national and private-label brands.
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