Cwm LLC has significantly increased its investment in Chewy Inc. (NYSE: CHWY) by an astonishing 8,785% during the third quarter of 2023. According to its latest Form 13F filing with the Securities and Exchange Commission (SEC), Cwm LLC now holds 284,499 shares of Chewy, valued at approximately $11,508,000. This surge in ownership follows the acquisition of an additional 281,297 shares during the period.
Several other institutional investors have also adjusted their positions in Chewy recently. Parkside Financial Bank & Trust increased its holdings by 34.5%, now owning 1,161 shares worth $49,000 after acquiring an additional 298 shares. Los Angeles Capital Management LLC added 1.4% to its stake, bringing its total to 28,418 shares valued at $1,211,000 after purchasing 384 shares.
GAMMA Investing LLC grew its stake by 13.7%, now owning 3,369 shares worth $144,000, while Hantz Financial Services Inc. raised its holdings by 2.8%, totaling 15,637 shares valued at $666,000. Additionally, Harbour Capital Advisors LLC boosted its stake by 2.0%, holding 23,470 shares worth $962,000. Currently, institutional investors control 93.09% of Chewy’s stock.
Insider Transactions and Market Reactions
In related developments, Chewy’s Chief Technology Officer, Satish Mehta, sold 8,872 shares on December 3, 2023, at an average price of $33.53, resulting in a total transaction of $297,478.16. Following this sale, Mehta’s holdings decreased by 3.72%, leaving him with 229,702 shares valued at around $7,701,908.06.
Meanwhile, Chief Executive Officer Sumit Singh sold 40,789 shares on December 2, 2023, for $1,375,812.97, decreasing his ownership by 6.14% to 623,185 shares worth $21,020,030.05. In total, insiders sold 83,985 shares valued at $2,802,809 over the past ninety days. Corporate insiders now hold 0.43% of the company’s stock.
Analysts have also been active regarding Chewy’s stock. UBS Group set a target price of $42.00, while Citigroup reaffirmed a “market outperform” rating. Barclays raised its price objective from $47.00 to $52.00 and assigned an “overweight” rating. Piper Sandler also maintained an “overweight” rating, setting a target of $48.00. Overall, two analysts have rated Chewy as a Strong Buy, nineteen as Buy, and four as Hold, leading to an average rating of “Moderate Buy” with a target price of $46.72, according to MarketBeat.com.
Chewy’s Financial Performance
Chewy’s stock experienced a slight increase of 1.6% on the NYSE, opening at $32.46 on December 11, 2023. The company’s 50-day moving average stands at $33.80, while the 200-day moving average is $37.24. Chewy recorded a 52-week low of $29.83 and a high of $48.62, with a market capitalization of $13.47 billion.
In its latest earnings report, issued on December 10, 2023, Chewy reported earnings of $0.14 per share, missing analysts’ expectations of $0.31 by $0.17. The company generated revenue of $3.12 billion, slightly exceeding estimates of $3.10 billion. Chewy’s net margin was 1.64%, and it achieved a return on equity of 56.78%, with an 8.1% year-over-year revenue increase.
Looking ahead, Chewy has projected its Q4 2025 earnings per share to range between $0.240 and $0.270. Analysts anticipate that Chewy will post $0.24 earnings per share for the current year.
Founded in 2011 by Ryan Cohen and Michael Day, Chewy has established itself as a prominent e-commerce retailer specializing in pet supplies and services. The company offers a wide range of products for various pets, including dogs, cats, and small animals, through its user-friendly online platform and mobile application.