Evercore ISI has recently raised Chewy Inc (CHWY) stock rating, as announced on January 13, 2025, according to Finviz. Earlier, on January 6, 2025, Mizuho had raised the stock from a Neutral to Outperform, setting a price target of $42 for CHWY stock. Wolfe Research also raised Outperform rating. Additionally, Exane BNP Paribas reduced Neutral rating on December 5, 2024. BofA Securities analysts, in their report published on November 20, 2024, also raised Buy rating and set a price target of $24 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 Friday, Chewy Inc (CHWY) stock saw a decline, ending the day at $37.01 which represents a decrease of $-0.26 or -0.70% from the prior close of $37.27. The stock opened at $37.52 and touched a low of $36.86 during the day, reaching a high of $37.66. The volume of shares traded was 3.38 million falling short of the average volume of 5.89 million.
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CHWY Stock Performance and Moving Averages
In recent trading, Chewy Inc (CHWY) stock price has shown some volatility, fluctuating 1.90% over the last five trades and 10.31% 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 42.90%, and it has gained 26.40% in the previous three months. Currently, CHWY is trading at 5.36%, 10.06%, and 40.62% 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 -5.35% below its 52-week high but remains 152.03% above its 52-week low. The Average True Range (ATR) (14 days) of 1.39 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 1.07% and a profit margin of 3.53%, with a gross margin of 42.90%. 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 $15.13 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 40.03, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 74.63. Additionally, the Price-to-Sales Ratio is 1.32, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 67.59, 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 60.91% of Chewy Inc (CHWY)’s shares, while financial institutions hold 32.11%.
Notable insider trades include Singh Sumit, Chief Executive Officer at Chewy Inc (CHWY), who sold 114130 shares on Jan 15 ’25, at $37.7 each, totaling $4.30 million. On Jan 13 ’25, Mehta Satish, Chief Technology Officer, sold 168105 shares for $36.32 each, amounting to $6.11 million. Additionally, on Jan 06 ’25, Argos Holdings GP LLC sold 7000000 shares at $35.77 each, generating $250.39 million.
