Chewy Inc. (CHWY) expanding its growth trajectory ahead

Chewy Inc. (NYSE: CHWY) stock jumped 0.18% on Tuesday to $43.50 against a previous-day closing price of $43.42. With 3.74 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.54 million shares. During the session, the Internet Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $44.55 whereas the lowest price it dropped to was $43.00. The 52-week range on CHWY shows that it touched its highest point at $54.19 and its lowest point at $22.22 during that stretch. It currently has a 1-year price target of $47.27. Beta for the stock currently stands at 0.71.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CHWY was down-trending over the past week, with a drop of -0.96%, but this was up by 5.58% over a month. Three-month performance surged to 16.37% while six-month performance rose 4.19%. The stock gained 14.32% in the past year, while it has gained 17.31% so far this year. A look at the trailing 12-month EPS for CHWY yields -0.05 with Next year EPS estimates of 0.11. For the next quarter, that number is -0.11. This implies an EPS growth rate of 22.10% for this year and 650.00% for next year.

Float and Shares Shorts:

At present, 422.90 million CHWY shares are outstanding with a float of 90.01 million shares on hand for trading. On Oct 13, 2022, short shares totaled 24.69 million, which was 5.84% higher than short shares on Sep 14, 2022. In addition to Mr. Sumit Singh as the firm’s CEO & Director, Mr. Mario J. Marte serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 99.88% of CHWY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.08% of CHWY, in contrast to 42.78% held by mutual funds. Shares owned by individuals account for 16.82%. As the largest shareholder in CHWY with 17.48% of the stake, Morgan Stanley Investment Managem holds 19,600,804 shares worth 19,600,804. A second-largest stockholder of CHWY, Baillie Gifford & Co., holds 17,080,994 shares, controlling over 15.23% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in CHWY, holding 7,232,711 shares or 6.45% stake. With a 4.03% stake in CHWY, the Morgan Stanley Invt. Fds. – US Ad is the largest stakeholder. A total of 4,516,796 shares are owned by the mutual fund manager. The Morgan Stanley Instl. Fund-Growth, which owns about 3.29% of CHWY stock, is the second-largest Mutual Fund holder. It holds 3,692,211 shares valued at 136.91 million. Vanguard US Growth Fund holds 3.24% of the stake in CHWY, owning 3,635,272 shares worth 134.8 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CHWY since 28 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CHWY analysts setting a high price target of $57.00 and a low target of $6.00, the average target price over the next 12 months is $43.86. Based on these targets, CHWY could surge 31.03% to reach the target high and fall by -86.21% to reach the target low. Reaching the average price target will result in a growth of 0.83% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CHWY will report FY 2023 earnings on 03/28/2023. Analysts have provided yearly estimates in a range of $0.10 being high and -$0.03 being low. For CHWY, this leads to a yearly average estimate of -$0.01. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Chewy Inc. surprised analysts by $0.09 when it reported $0.01 EPS against a consensus estimate of -$0.08. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is -$0.06 and the low estimate is -$0.13. The average estimate for the next quarter is thus -$0.11.

Summary of Insider Activity:

Insiders traded CHWY stock several times over the past three months with 0 Buys and 15 Sells. In these transactions, 0 shares were bought while 499,785 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 364,894 while 1,211,434 shares were sold.

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