The stock of Chewy Inc. (NYSE:CHWY) decreased by -$0.67 on Monday to finish at $30.22, down -2.17 percent. The last five days have seen an average of 3,797,980 shares of common stock traded. 13 times new highs were reached in the current year, with a fall of -$6.86. The average number of shares traded over the last 20 days was 4,332,550, while the average volume over the last 50 days totaled 3,967,700.
CHWY stock dropped -20.45% since last month. On 08/14/23, the company’s shares reached a one-month low of $29.89. The stock touched a high of $52.88 on 02/03/23, after rallying from a low of $29.10 in 52 weeks. The price of CHWY stock has declined by -18.50% or -$6.86 this year, reaching a new high 13 times. Still, the stock price is down -42.85% from the 52-week high.
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Insider Transactions
CHWY stock investors should be aware that Chewy Inc. (CHWY) stock had its last reported insider trading activity 13 days ago on Aug 02. On Aug 02, Interim CFO & CAO Bowman Stacy sold 465 shares at $32.62 each. This transaction resulted in the insider making $15,168. On Aug 02, Singh Sumit sold 434 shares at a price of US$32.62. After the transaction, the insider now owns 97,624 shares. General Counsel Morant Michael had earlier sold 189 shares on Aug 02 for $32.62 a share. The transaction was completed for $6,165.
Valuation Metrics
Chewy Inc. (CHWY) has a trailing price-to-earnings (P/E) ratio of 245.69. Beta for the stock is 0.87. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.24, the price-to-book (PB) ratio of 45.79, and the price-to-cash flow ratio of 54.27.
Financial Health
For the three months ended April 29, Chewy Inc.’s quick ratio was 0.50, while its current ratio was 0.90, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 28.30% percent. Chewy Inc.’s EBITDA margin for the year ended April 29 was 1.81%, whereas its operating margin stood at 0.60% for the same period. Based on annual data, it had gross profit of $2.83 billion and revenue of $10.1 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CHWY’s return on assets (ROA) during the last 12 months has been 2.10%. There was a 24.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 27.20%.
Earnings Surprise
According to Chewy Inc.’s quarterly financial report for the quarter that ended April 29, it had $346.94 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.71 billion, while revenues rose by 11.79% to $2.53 billion. It was predicted that Chewy Inc.’s quarterly earnings would be $0.05, but it ended up being -$0.04, beating the consensus by 225.00%. EBITDA was $52.93 million for the quarter. At the end of Chewy Inc.’s most recent quarter ended April 29, its liabilities totaled 2.46 billion, while its total debt was $528.4 million. Equity owned by shareholders amounts to $427.43 million.
Technical Picture
Here’s a quick look at Chewy Inc.’s (CHWY) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 24.29%, suggesting the stock is oversold, with a 24.94% historical volatility rate.
The stochastic %K and %D were 11.12% and 8.94% respectively, while the average true range (ATR) was 1.14. Based on the 14-day stochastic reading of 7.27%, the RSI (14) reading is 29.16%. On the 9-day MACD Oscillator, the stock is at -0.79, and the 14-day reading is at -1.48.
Analyst Ratings
In its most recent analyst report, Goldman raised its rating on Chewy Inc. (NYSE: CHWY) to a Buy. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Chewy Inc. (CHWY) an Overweight rating. CHWY is a stock that is recommended for selling by 2 brokerage firms, while 11 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 13 others recommend it as a buy.
What is CHWY’s price target for the next 12 months?
The current consensus forecast for the stock is between $6.00 and $56.00, with a median target price of $44.50. In analyzing these forecasts, the average price target given by analysts for Chewy Inc. (CHWY) is $42.32.
