Chewy Reports Strong Quarterly Earnings, Exceeding Estimates

Chewy (NYSE:CHWY) released its quarterly earnings on Wednesday, revealing a strong performance. The company reported earnings of $0.28 per share for the quarter, which greatly exceeded analysts' expectations of just $0.03 by $0.25, according to Briefing.com. Chewy also generated revenue of $3.25 billion during this period, surpassing the consensus estimate of $3.20 billion. The company demonstrated a net margin of 3.51% and a notable return on equity of 24.47%. Year-over-year, Chewy's quarterly revenue grew by 15%, reflecting positive growth in the business. In the same quarter last year, the company had reported earnings of $0.07 per share.

Chewy's Stock Performance

Following the earnings announcement, Chewy's stock experienced a decline of 1.4%, trading down $0.46 to reach $32.23 in midday trading on Friday. The stock traded at a volume of 1,276,593 shares, significantly below its average volume of 7,417,271 shares. Currently, Chewy has a market capitalization of $13.12 billion, a price-to-earnings (P/E) ratio of 35.38, and a P/E to growth (P/E/G) ratio of 2.21. Over the past year, the stock has ranged from a low of $14.69 to a high of $40.09. It has a 50-day simple moving average of $36.00 and a 200-day simple moving average of $33.13.

Analyst Ratings and Price Targets

Several analysts have provided their insights on Chewy's stock recently. Guggenheim set a price target of $42.00 and gave the company a 'buy' rating in a report issued on February 4. Meanwhile, BNP Paribas downgraded Chewy from an 'outperform' rating to 'neutral' on December 5. Seaport Research Partners upgraded Chewy to a 'hold' rating in a report released on the following Monday. Furthermore, Morgan Stanley raised the target price for Chewy from $38.00 to $40.00, maintaining an 'overweight' rating. Mizuho also lifted its price target for Chewy from $42.00 to $43.00, reiterating an 'outperform' rating. Currently, six analysts have given the stock a hold rating, while seventeen have rated it as a buy. Overall, Chewy holds a consensus rating of "Moderate Buy" with an average price target of $38.68, according to MarketBeat.com.

Insider Transactions

In other developments, CEO Sumit Singh sold 4,000 shares of Chewy's stock on January 17 at an average price of $37.52. This transaction totaled $150,080 and resulted in a 0.77% decrease in his holdings. Following the sale, Singh retains ownership of 518,581 shares valued at approximately $19.46 million. Additionally, CFO David Reeder sold 307,558 shares on February 7 at an average price of $37.48, bringing in total proceeds of $11.53 million. This sale comprised a significant 36.02% decrease in his holdings, leaving him with 546,257 shares valued closely at $20.47 million. Over the last three months, various insiders have sold 8,083,269 shares of Chewy, valued at $290.61 million, indicating that insiders currently own 2.10% of the stock.

Company Overview

Chewy, Inc., along with its subsidiaries, operates as a pure play e-commerce company in the United States. It offers a wide array of products for pets, including pet food and treats, supplies, medications, and various health products. The company caters to pets such as dogs, cats, fish, birds, small animals, horses, and reptiles through its retail websites and mobile apps.

Chewy, Earnings, Stocks