Does Wall Street Rate Chewy Inc. (CHWY) Shares A Sell?

As of Thursday close, Chewy Inc.’s (NYSE:CHWY) stock was up $1.09, moving up 2.59 percent to $43.23. The average number of shares traded per day over the past five days has been 3,191,360 shares. 4 times new highs have been achieved over the past 5 days, with a $4.10 gain in that time frame. In the last twenty days, the average volume was 4,662,460, while in the previous 50 days, it was 6,608,008.

Since last month, CHWY stock rose 8.54%. Shares of the company fell to $36.28 on 07/28/22, the lowest level in the past month. A 52-week high of $97.74 was reached on 01/03/22 after having rallying from a 52-week low of $22.22. Since the beginning of this year, CHWY’s stock price has dropped by -26.69% or -$15.74, and marked a new high 1 time. However, the stock has declined by -55.77% since its 52-week high.

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Chewy Inc. (CHWY) last reported insider trading activity 52 days ago on Jun 14. Singh Sumit, the Chief Executive Officer of the company, disposed of 14,904 shares for $27.18 on Jun 14. It resulted in a $405,135 divestment by the insider. Singh Sumit sold 155,250 shares at an average price of $27.18 on Jun 14. The insider now owns 722,701 shares following the transaction. On Jun 14, Principal Accounting Officer Bowman Stacy sold 25,879 shares at $27.18 apiece. The transaction was valued at $703,469.

Financial Health

In the three months ended April 29, Chewy Inc.’s quick ratio stood at 0.50, while its current ratio was 0.80, showing that the company is not able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 26.70% percent. In the year ended April 29, operating margins totaled -1.00%. Based on annual data, CHWY earned $2.37 billion in gross profit and brought in $8.89 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -491.00%. Return on equity (ROE) for the past 12 months was -175.50%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CHWY’s revenue rose 12.07% to $2.39 billion during the quarter, while net income inched up to $2.43 billion. While analysts expected Chewy Inc. to report -$0.14 quarterly earnings, the actual figure was $0.04 per share, beating the consensus estimate by 128.60%. During the quarter, the company generated $36.16 million in EBITDA. The liabilities of Chewy Inc. were 2.13 billion at the end of its most recent quarter ended April 29, and its total debt was $436.02 million. The value of shareholders’ equity is $420.61 million.

Technical Picture

This quick technical analysis looks at Chewy Inc.’s (CHWY) price momentum. With a historical volatility rate of 58.30%, the RSI 9-day stood at 62.77% on 04 August.

With respect to its five-day moving average, the current Chewy Inc. price is up by +10.48% percent or $4.10. At present, CHWY shares trade +1.91% above its 20-day simple moving average and +10.17% percent above its 100-day simple moving average. However, the stock is currently trading approximately +73.61% above its SMA50 and -34.41% below its SMA200.

Stochastic coefficient K was 51.53% and Stochastic coefficient D was 43.69%, while ATR was 2.68. Given the Stochastic reading of 62.00% for the 14-day period, the RSI (14) reading has been calculated as 60.87%. As of today, the MACD Oscillator reading stands at 1.60, while the 14-day reading stands at 0.57.

Analyst Ratings

Chewy Inc. downgraded its rating on Chewy Inc. (NYSE: CHWY) to a Neutral in a note to investors on July 26, 2022. The analysts firm previously had an Outperform rating on the stock.Chewy Inc. (CHWY) has been rated Overweight by analysts. According to 1 brokerage firm, CHWY is a sell, and 9 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Chewy Inc. stock as buy, with 13 recommending it as overweight.

With a median target price of $44.00, the current consensus forecast for the stock is $24.00 – $60.00. Based on these forecasts, analysts predict Chewy Inc. (CHWY) will achieve an average price target of $44.05.


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