Chewy (NYSE:CHWY) Sets New 1-Year Low – Here’s Why

Chewy (NYSE:CHWY)’s share price hit a new 52-week low on Wednesday . The stock traded as low as $19.08 and last traded at $20.1590, with a volume of 5285161 shares. The stock had previously closed at $20.40.

Key Headlines Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported Q1 adjusted EPS of $0.43, matching analyst estimates, while revenue of $3.36 billion slightly beat expectations and rose 7.7% year over year. Gross margin also improved, which supports the view that profitability is still trending in the right direction. Article Title
• Positive Sentiment: Several reports noted that the stock moved higher after the print, as investors focused on the beat and signs that Chewy continues to grow revenue and improve margins despite a tough consumer backdrop. Article Title
• Neutral Sentiment: Management updated Q2 guidance to EPS of $0.36 and revenue of about $3.3 billion, both slightly below consensus, which points to near-term caution but not a major surprise. Article Title
• Negative Sentiment: Chewy also cut its full-year sales outlook to $13.4 billion-$13.55 billion from $13.6 billion-$13.75 billion, raising concerns that demand may be softer than previously expected. Article Title

Analyst Ratings Changes

Several brokerages have weighed in on CHWY. UBS Group decreased their price objective on shares of Chewy from $42.00 to $32.00 and set a “neutral” rating on the stock in a research note on Thursday, March 26th. Wall Street Zen cut shares of Chewy from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Citizens Jmp decreased their price target on shares of Chewy from $48.00 to $45.00 and set a “market outperform” rating on the stock in a research note on Thursday, March 26th. Bank of America decreased their price target on shares of Chewy from $46.00 to $40.00 and set a “buy” rating on the stock in a research note on Thursday, March 26th. Finally, Wedbush decreased their price target on shares of Chewy from $42.00 to $36.00 and set an “outperform” rating on the stock in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Chewy has a consensus rating of “Moderate Buy” and a consensus price target of $41.24.

Chewy Price Performance

The stock has a market capitalization of $8.26 billion, a P/E ratio of 37.93, a PEG ratio of 0.89 and a beta of 1.44. The business’s 50 day simple moving average is $23.91 and its 200-day simple moving average is $27.71.

Chewy (NYSE:CHWY) last announced its quarterly earnings data on Wednesday, June 10th. The company reported $0.43 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.43. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm had revenue of $3.36 billion for the quarter, compared to analysts’ expectations of $3.35 billion. During the same period last year, the firm earned $0.35 earnings per share. The business’s revenue for the quarter was up 9.7% on a year-over-year basis. Chewy has set its Q2 2026 guidance at 0.360-0.360 EPS. Research analysts anticipate that Chewy will post 0.87 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Chewy news, General Counsel Da-Wai Hu sold 8,149 shares of the firm’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total value of $219,289.59. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Sumit Singh sold 83,306 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total transaction of $2,132,633.60. Following the completion of the transaction, the chief executive officer directly owned 874,061 shares in the company, valued at approximately $22,375,961.60. The trade was a 8.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 95,675 shares of company stock worth $2,459,955. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Winslow Asset Management Inc. bought a new position in shares of Chewy during the third quarter worth $6,171,000. Vanguard Group Inc. boosted its position in shares of Chewy by 5.4% during the fourth quarter. Vanguard Group Inc. now owns 19,920,347 shares of the company’s stock worth $658,367,000 after purchasing an additional 1,017,214 shares in the last quarter. WINTON GROUP Ltd boosted its position in shares of Chewy by 110.6% during the third quarter. WINTON GROUP Ltd now owns 239,800 shares of the company’s stock worth $9,700,000 after purchasing an additional 125,943 shares in the last quarter. Champlain Investment Partners LLC bought a new position in shares of Chewy during the third quarter worth $89,022,000. Finally, Intech Investment Management LLC boosted its position in shares of Chewy by 218.6% during the third quarter. Intech Investment Management LLC now owns 173,300 shares of the company’s stock worth $7,010,000 after purchasing an additional 118,903 shares in the last quarter. Institutional investors own 93.09% of the company’s stock.

Chewy Company Profile

Chewy, Inc (NYSE: CHWY) is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.