Chewy’s (CHWY) Outperform Rating Reaffirmed at Royal Bank of Canada

Royal Bank of Canada reaffirmed their outperform rating on shares of Chewy (NYSE:CHWY) in a report released on Thursday morning,Benzinga reports. The firm currently has a $42.00 price objective on the stock.

Other equities analysts have also recently issued research reports about the company. Morgan Stanley upped their price target on Chewy from $38.00 to $40.00 and gave the stock an “overweight” rating in a report on Monday, January 13th. Wedbush reaffirmed an “outperform” rating and set a $39.00 target price on shares of Chewy in a research note on Thursday. UBS Group lifted their price target on shares of Chewy from $30.00 to $34.00 and gave the company a “neutral” rating in a research note on Tuesday, December 3rd. Seaport Res Ptn upgraded shares of Chewy to a “hold” rating in a research report on Monday. Finally, Wolfe Research raised shares of Chewy from a “peer perform” rating to an “outperform” rating in a report on Friday, January 3rd. Six analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $38.68.

Chewy Price Performance

NYSE:CHWY opened at $32.68 on Thursday. The company has a 50 day moving average price of $36.00 and a 200-day moving average price of $33.13. Chewy has a 1-year low of $14.69 and a 1-year high of $40.09. The firm has a market cap of $13.31 billion, a price-to-earnings ratio of 35.91, a price-to-earnings-growth ratio of 2.21 and a beta of 1.23.

Chewy (NYSE:CHWY) last released its quarterly earnings data on Wednesday, March 26th. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.25. The company had revenue of $3.25 billion during the quarter, compared to analysts’ expectations of $3.20 billion. Chewy had a net margin of 3.51% and a return on equity of 24.47%. The firm’s revenue for the quarter was up 15.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.07 earnings per share. On average, sell-side analysts anticipate that Chewy will post 0.24 earnings per share for the current fiscal year.

Insider Activity at Chewy

In other Chewy news, CEO Sumit Singh sold 63,187 shares of the company’s stock in a transaction on Monday, January 6th. The stock was sold at an average price of $37.62, for a total value of $2,377,094.94. Following the completion of the sale, the chief executive officer now directly owns 643,939 shares in the company, valued at $24,224,985.18. This represents a 8.94 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Argos Holdings Gp Llc sold 7,000,000 shares of Chewy stock in a transaction on Monday, January 6th. The stock was sold at an average price of $35.77, for a total value of $250,390,000.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 8,083,269 shares of company stock valued at $290,611,129. 2.10% of the stock is currently owned by insiders.

Institutional Trading of Chewy

Several hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System lifted its holdings in Chewy by 16.5% in the fourth quarter. California State Teachers Retirement System now owns 155,785 shares of the company’s stock valued at $5,217,000 after acquiring an additional 22,033 shares during the last quarter. Centaurus Financial Inc. acquired a new position in shares of Chewy in the 4th quarter valued at $154,000. Integrated Advisors Network LLC purchased a new position in shares of Chewy during the 4th quarter worth $235,000. Polar Asset Management Partners Inc. increased its position in shares of Chewy by 26.5% during the 4th quarter. Polar Asset Management Partners Inc. now owns 288,733 shares of the company’s stock worth $9,670,000 after purchasing an additional 60,533 shares during the last quarter. Finally, Mackenzie Financial Corp purchased a new stake in Chewy in the 4th quarter valued at about $318,000. Hedge funds and other institutional investors 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.