Investors Purchase Large Volume of Call Options on Chewy (NYSE:CHWY)

Chewy, Inc. (NYSE:CHWY) was the recipient of some unusual options trading activity on Tuesday. Investors bought 70,359 call options on the company. This is an increase of approximately 54% compared to the average daily volume of 45,766 call options.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Morgan Stanley raised their price objective on shares of Chewy from $27.00 to $28.00 and gave the stock an “overweight” rating in a research note on Thursday, May 30th. JPMorgan Chase & Co. raised their target price on shares of Chewy from $22.00 to $28.00 and gave the stock an “overweight” rating in a research report on Thursday, May 30th. Raymond James raised their target price on shares of Chewy from $19.00 to $24.00 and gave the stock an “outperform” rating in a research report on Thursday, May 30th. Jefferies Financial Group reduced their target price on shares of Chewy from $27.00 to $25.00 and set a “buy” rating on the stock in a research report on Thursday, March 21st. Finally, Citigroup reduced their target price on shares of Chewy from $18.00 to $16.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 7th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and thirteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $26.31.

Chewy Trading Up 14.1 %

NYSE:CHWY opened at $26.02 on Wednesday. Chewy has a 12 month low of $14.69 and a 12 month high of $40.22. The firm has a fifty day simple moving average of $18.15 and a 200-day simple moving average of $18.53. The company has a market capitalization of $11.32 billion, a P/E ratio of 144.56, a PEG ratio of 3.67 and a beta of 0.99.

Chewy (NYSE:CHWY) last posted its quarterly earnings data on Wednesday, May 29th. The company reported $0.15 EPS for the quarter, topping the consensus estimate of $0.04 by $0.11. Chewy had a net margin of 0.73% and a return on equity of 16.62%. The business had revenue of $2.88 billion during the quarter, compared to the consensus estimate of $2.85 billion. Equities analysts forecast that Chewy will post 0.2 EPS for the current year.

Insider Activity at Chewy

In related news, CAO Stacy Bowman sold 8,025 shares of the stock in a transaction dated Tuesday, April 2nd. The shares were sold at an average price of $15.53, for a total value of $124,628.25. Following the completion of the transaction, the chief accounting officer now owns 243,769 shares of the company’s stock, valued at approximately $3,785,732.57. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other Chewy news, CTO Satish Mehta sold 8,019 shares of the firm’s stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $15.12, for a total value of $121,247.28. Following the completion of the sale, the chief technology officer now owns 569,594 shares of the company’s stock, valued at $8,612,261.28. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CAO Stacy Bowman sold 8,025 shares of the firm’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $15.53, for a total transaction of $124,628.25. Following the completion of the sale, the chief accounting officer now directly owns 243,769 shares of the company’s stock, valued at approximately $3,785,732.57. The disclosure for this sale can be found here. In the last quarter, insiders sold 68,862 shares of company stock valued at $1,047,242. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CHWY. Headinvest LLC acquired a new position in Chewy during the third quarter valued at $39,000. Quest Partners LLC purchased a new position in Chewy in the fourth quarter valued at $65,000. Future Financial Wealth Managment LLC purchased a new position in Chewy in the first quarter valued at $65,000. EntryPoint Capital LLC increased its holdings in Chewy by 18.0% in the first quarter. EntryPoint Capital LLC now owns 4,066 shares of the company’s stock valued at $65,000 after buying an additional 619 shares in the last quarter. Finally, Signaturefd LLC increased its holdings in Chewy by 37.8% in the fourth quarter. Signaturefd LLC now owns 3,358 shares of the company’s stock valued at $79,000 after buying an additional 922 shares in the last quarter. 93.09% of the stock is currently owned by institutional investors and hedge funds.

Chewy Company Profile

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.