Chewy Inc. (NYSE:CHWY) finished Thursday with an addition of $0.6 to close at $31.11, an upside of 1.97 percent. An average of 3,464,080 shares of common stock have been traded in the last five days. There was a fall of -$1.66 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 4,672,650 shares traded, while the 50-day average volume stands at 4,495,130.
CHWY stock has decreased by -16.77% in the last month. The company shares reached their 1-month lowest point of $30.42 on 08/09/23. With the stock rallying to its 52-week high on 02/03/23, shares of the company touched a low of $29.10 and a high of $52.88 in 52 weeks. It has reached a new high 13 times so far this year and lost -16.10% or -$5.97 in price. In spite of this, the price is down -41.17% from the 52-week high.
Insider Transactions
CHWY stock investors should be aware that Chewy Inc. (CHWY) stock had its last reported insider trading activity 9 days ago on Aug 02. In this transaction, the insider spent $15,168. Chief Executive Officer, Singh Sumit, disposed of 434 shares at a price of $32.62 on Aug 02. The insider now owns more than $14,157 worth of shares. Prior to that, General Counsel Morant Michael went on to Sale 189 shares at $32.62 each on Aug 02. An amount of $6,165 was transacted.
Valuation Metrics
Chewy Inc. (CHWY) has a trailing price-to-earnings (P/E) ratio of 252.93. The stock’s beta is 0.87. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.28, the price-to-book (PB) ratio at 47.14, and the price-to-cash flow ratio at 55.99.
Financial Health
The quick ratio of Chewy Inc. for the three months ended April 29 was 0.50, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending April 29. Chewy Inc.’s EBITDA margin for the year ending April 29 is 1.81%, while its operating margin for the same period stands at 0.60%. Its gross profit as reported stood at $2.83 billion compared to revenue of $10.1 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Chewy Inc.’s return on assets was 2.10%.
Earnings Surprise
For the three-month period that ended April 29, Chewy Inc. had $346.94 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $6.1 million in the quarter, while revenues of $2.31 million were grew 1142.79%. The analyst consensus anticipated Chewy Inc.’s latest quarter earnings to come in at -$0.04 per share, but it turned out to be $0.05, a 225.00% surprise. For the quarter, EBITDA amounted to $52.93 million. Shareholders own equity worth $427.43 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Chewy Inc. (CHWY) price momentum. RSI 9-day as of the close on 10 August was 29.02%, suggesting the stock is oversold, with historical volatility in this time frame at 26.83%.
As of today, CHWY’s price is $31.49 -5.07% or -$1.66 from its 5-day moving average. CHWY is currently trading -17.46% lower than its 20-day SMA and -19.43% lower than its 100-day SMA. However, the stock’s current price level is +3.01% above the SMA50 and -16.77% below the SMA200.
The stochastic %K and %D were 6.46% and 5.64%, respectively, and the average true range (ATR) was 1.22. With the 14-day stochastic at 14.38% and the average true range at 1.30, the RSI (14) stands at 32.38%. The stock has reached -1.28 on the 9-day MACD Oscillator while the 14-day reading was at -1.74.
Analyst Ratings
Goldman upgraded Chewy Inc. (NYSE: CHWY) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Chewy Inc. (CHWY) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell CHWY, while 11 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 14 others rate it as a “buy”.
What is CHWY’s price target for the next 12 months?
Analysts predict a range of price targets between $6.00 and $56.00, with a median target of $45.00. Taking a look at these predictions, the average price target given by analysts for Chewy Inc. (CHWY) stock is $42.74.
