BofA Securities has recently raised Chewy Inc (CHWY) stock to Buy rating, as announced on November 20, 2024, according to Finviz. Earlier, on November 8, 2024, Citigroup had raised the stock from a Neutral to Buy, setting a price target of $40 for CHWY stock. Needham also resumed Hold rating. Additionally, TD Cowen initiated Buy rating on October 9, 2024, with a target price of $38. Piper Sandler analysts, in their report published on August 23, 2024, also resumed Overweight rating and set a price target of $35 for Chewy Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Chewy Inc (CHWY) Stock Trading Recap
On Tuesday, Chewy Inc (CHWY) stock saw a decline, ending the day at $33.62 which represents a decrease of $-0.01 or -0.03% from the prior close of $33.63. The stock opened at $33.33 and touched a low of $32.88 during the day, reaching a high of $34.17. The volume of shares traded was 8.21 million exceeding the average volume of 5.75 million.
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CHWY Stock Performance and Moving Averages
In recent trading, Chewy Inc (CHWY) stock price has shown some volatility, fluctuating -2.89% over the last five trades and 23.97% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 51.24%, and it has gained 23.83% in the previous three months. Currently, CHWY is trading at 2.42%, 11.16%, and 41.72% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CHWY, a Consumer Cyclical sector stock, is trading -14.02% below its 52-week high but remains 128.94% above its 52-week low. The Average True Range (ATR) (14 days) of 1.32 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Chewy Inc’s Profitability and Valuation Ratios
Chewy Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 0.77% and a profit margin of 3.22%, with a gross margin of 51.24%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Chewy Inc’s market capitalization stands at $13.71 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 40.4, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 66.68. Additionally, the Price-to-Sales Ratio is 1.21, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 28.84, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 68.18% of Chewy Inc (CHWY)’s shares, while financial institutions hold 32.18%.
Notable insider trades include Argos Holdings GP LLC, 10% Owner at Chewy Inc (CHWY), who sold 1250000 shares on Oct 15 ’24, at $29.4 each, totaling $36.75 million. On Sep 23 ’24, Argos Holdings GP LLC, 10% Owner, sold 26870748 shares for $29.4 each, amounting to $790.00 million. Additionally, on Aug 02 ’24, Singh Sumit sold 14338 shares at $22.24 each, generating $0.32 million.
