Cwm LLC has dramatically increased its stake in Chewy, Inc. (NYSE: CHWY) by an astonishing 8,785% in the third quarter of 2023. According to Cwm’s most recent Form 13F filing with the Securities and Exchange Commission (SEC), the firm now holds 284,499 shares of Chewy after acquiring an additional 281,297 shares during the period. This investment values Cwm’s holdings in Chewy at approximately $11.5 million.
This significant acquisition reflects a broader trend among institutional investors regarding Chewy’s stock. Other hedge funds have also adjusted their positions in the company. For instance, Parkside Financial Bank & Trust increased its stake by 34.5% in the second quarter, bringing its total ownership to 1,161 shares valued at $49,000 after purchasing an additional 298 shares. Similarly, Los Angeles Capital Management LLC raised its position by 1.4%, now holding 28,418 shares worth $1.21 million.
Moreover, GAMMA Investing LLC boosted its stake by 13.7%, owning 3,369 shares valued at $144,000, while Hantz Financial Services Inc. increased its holdings by 2.8%, now possessing 15,637 shares worth $666,000. Harbour Capital Advisors LLC also expanded its position by 2.0%, owning 23,470 shares valued at $962,000. Collectively, institutional investors now control 93.09% of Chewy’s stock.
Insider Transactions Raise Eyebrows
In related developments, insider trading has come to light, with both Chief Technology Officer Satish Mehta and Chief Executive Officer Sumit Singh selling sizable portions of their stock. On December 3, Mehta sold 8,872 shares at an average price of $33.53, totaling $297,478.16. Post-transaction, Mehta retains 229,702 shares valued at approximately $7.7 million, reflecting a 3.72% decrease in ownership.
On December 2, Singh divested 40,789 shares at an average price of $33.73, resulting in total proceeds of $1.38 million. Following this sale, Singh holds 623,185 shares valued at $21.02 million, marking a 6.14% reduction in his stake. In the last ninety days, insiders have sold a total of 83,985 shares worth $2.8 million, while corporate insiders own just 0.43% of Chewy’s stock.
Analysts Offer Mixed Reviews
As for market sentiment, several brokerages have recently adjusted their ratings on Chewy’s stock. UBS Group set a target price of $42.00 on December 11. Meanwhile, Citigroup reaffirmed a “market outperform” rating on November 24. In a more bullish move, Barclays raised its price objective from $47.00 to $52.00 on the same date.
Piper Sandler also reiterated an “overweight” rating with a target price of $48.00, while Needham & Company LLC maintained a “hold” rating. Currently, two analysts rate the stock as a Strong Buy, nineteen as Buy, and four as Hold. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” with an average target price of $46.72.
Chewy’s stock saw a slight increase of 1.6%, opening at $32.46 on Monday. The stock’s 50-day moving average is $33.80, while the 200-day moving average stands at $37.24. Over the past year, Chewy has experienced a low of $29.83 and a high of $48.62. The company currently boasts a market capitalization of $13.47 billion, a P/E ratio of 67.63, and a PEG ratio of 3.28.
Chewy recently reported its quarterly earnings on December 10, revealing earnings per share of $0.14, which fell short of analysts’ estimates of $0.31 by $0.17. The company generated revenue of $3.12 billion, slightly exceeding analyst expectations of $3.10 billion. Chewy’s net margin stands at 1.64%, with a return on equity of 56.78%. This marks an 8.1% increase in revenue compared to the same quarter last year, although earnings per share declined from $0.20 in the prior year.
Looking ahead, Chewy has issued guidance for Q4 2025, projecting earnings per share between $0.240 and $0.270. Analysts anticipate that the company will achieve an earnings per share of $0.24 for the current year.
Founded in 2011 by Ryan Cohen and Michael Day, Chewy has established itself as a leading e-commerce retailer specializing in pet food, supplies, and services. The company provides a broad range of products for pets, including prescription medications, grooming essentials, and toys, through its user-friendly online platform and mobile app.
