Morgan Stanley Has Lowered Expectations for Chewy (NYSE:CHWY) Stock Price

Chewy (NYSE:CHWY) had its target price cut by Morgan Stanley from $50.00 to $48.00 in a report published on Thursday morning,Benzinga reports. They currently have an overweight rating on the stock.

Several other research firms have also weighed in on CHWY. Wall Street Zen lowered shares of Chewy from a “buy” rating to a “hold” rating in a report on Saturday, June 14th. Cowen reaffirmed a “buy” rating on shares of Chewy in a research report on Friday, June 6th. Royal Bank Of Canada cut their price target on shares of Chewy from $44.00 to $43.00 and set an “outperform” rating for the company in a research note on Thursday. Citigroup restated an “outperform” rating on shares of Chewy in a research note on Thursday, July 10th. Finally, Guggenheim reiterated a “buy” rating and issued a $45.00 price objective (up previously from $42.00) on shares of Chewy in a research note on Thursday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Chewy currently has an average rating of “Moderate Buy” and an average target price of $45.72.

Chewy Trading Up 2.6%

Shares of CHWY stock opened at $36.03 on Thursday. Chewy has a 1 year low of $26.28 and a 1 year high of $48.62. The firm’s 50 day moving average is $38.60 and its 200-day moving average is $38.30. The firm has a market capitalization of $14.96 billion, a price-to-earnings ratio of 102.94, a PEG ratio of 7.35 and a beta of 1.65.

Chewy (NYSE:CHWY) last announced its earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.33 by ($0.19). Chewy had a return on equity of 50.45% and a net margin of 1.22%.The company had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.08 billion. During the same quarter in the previous year, the company posted $0.24 earnings per share. Chewy’s revenue for the quarter was up 8.6% on a year-over-year basis. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, equities research analysts forecast that Chewy will post 0.24 earnings per share for the current fiscal year.

Insider Buying and Selling at Chewy

In other Chewy news, CTO Satish Mehta sold 8,727 shares of the business’s stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $35.82, for a total transaction of $312,601.14. Following the sale, the chief technology officer directly owned 276,467 shares of the company’s stock, valued at $9,903,047.94. The trade was a 3.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Argos Holdings Gp Llc sold 29,940,120 shares of the business’s stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $41.75, for a total transaction of $1,250,000,010.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 30,008,777 shares of company stock valued at $1,252,444,321. 0.43% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. BC Partners PE LP acquired a new position in shares of Chewy during the 1st quarter valued at $7,142,402,000. Invesco Ltd. grew its stake in shares of Chewy by 34.7% in the 2nd quarter. Invesco Ltd. now owns 7,187,518 shares of the company’s stock worth $306,332,000 after acquiring an additional 1,852,531 shares in the last quarter. State Street Corp grew its stake in shares of Chewy by 75.5% in the 2nd quarter. State Street Corp now owns 6,170,197 shares of the company’s stock worth $262,974,000 after acquiring an additional 2,654,496 shares in the last quarter. AQR Capital Management LLC grew its position in Chewy by 231.1% during the second quarter. AQR Capital Management LLC now owns 4,631,343 shares of the company’s stock valued at $196,323,000 after buying an additional 3,232,763 shares during the period. Finally, Voya Investment Management LLC grew its position in Chewy by 8.2% during the first quarter. Voya Investment Management LLC now owns 4,146,973 shares of the company’s stock valued at $134,818,000 after buying an additional 312,795 shares during the period. Institutional investors and hedge funds own 93.09% of the company’s stock.

About Chewy

Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications.