Why Did Chewy Inc (CHWY) Stock Plunge -2.13% Last Week?

Argus has recently raised Chewy Inc (CHWY) stock to Buy rating, as announced on January 23, 2025, according to Finviz. Earlier, on January 13, 2025, Evercore ISI had raised the stock rating, setting a price target of $47 for CHWY stock. Mizuho also raised Outperform rating with a price target of $42. Additionally, Wolfe Research raised Outperform rating on January 3, 2025. Exane BNP Paribas analysts, in their report published on December 5, 2024, also reduced Neutral rating 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 Monday, Chewy Inc (CHWY) stock saw a decline, ending the day at $38.14 which represents a decrease of $-0.84 or -2.15% from the prior close of $38.98. The stock opened at $37.9 and touched a low of $37.2 during the day, reaching a high of $38.87. The volume of shares traded was 5.62 million falling short of the average volume of 5.96 million.


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CHWY Stock Performance and Moving Averages

In recent trading, Chewy Inc (CHWY) stock price has shown some volatility, fluctuating -2.13% over the last five trades and 13.88% 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 64.04%, and it has gained 43.87% in the previous three months. Currently, CHWY is trading at 1.67%, 8.90%, and 39.23% 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 -4.86% below its 52-week high but remains 159.72% above its 52-week low. The Average True Range (ATR) (14 days) of 1.33 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 64.04%. 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 $15.59 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 41.25, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 76.77. Additionally, the Price-to-Sales Ratio is 1.36, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 69.66, 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 32.97%.

Notable insider trades include Singh Sumit, Chief Executive Officer at Chewy Inc (CHWY), who sold 9285 shares on Jan 30 ’25, at $40 each, totaling $0.37 million. On Jan 30 ’25, Mehta Satish, Chief Technology Officer, sold 83639 shares for $40 each, amounting to $3.35 million. Additionally, on Jan 22 ’25, Singh Sumit sold 13472 shares at $37.55 each, generating $0.51 million.

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