As of Thursday close, Chewy Inc.’s (NYSE:CHWY) stock was down -$3.35, moving down -12.26 percent to $23.98. The average number of shares traded per day over the past five days has been 10,443,181 shares. 4 times new highs have been achieved over the past 5 days, with a -$1.78 fall in that time frame. In the last twenty days, the average volume was 5,730,885, while in the previous 50 days, it was 4,688,802.
Since last month, CHWY stock retreated -26.03%. Shares of the company fell to $23.03 on 08/31/23, the lowest level in the past month. A 52-week high of $52.88 was reached on 02/03/23 after having rallying from a 52-week low of $25.29. Since the beginning of this year, CHWY’s stock price has dropped by -35.33% or -$13.10, and marked a new high 13 times. However, the stock has declined by -54.65% since its 52-week high.
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CHWY stock investors should be aware that Chewy Inc. (CHWY) stock had its last reported insider trading activity 30 days ago on Aug 02. Bowman Stacy, the Interim CFO & CAO of the company, disposed of 465 shares for $32.62 on Aug 02. It resulted in a $15,168 divestment by the insider. Singh Sumit sold 434 shares at an average price of $32.62 on Aug 02. The insider now owns 97,624 shares following the transaction. On Aug 02, General Counsel Morant Michael sold 189 shares at $32.62 apiece. The transaction was valued at $6,165.
Valuation Metrics
Right now, Chewy Inc. (CHWY) has a P/E ratio of about 194.96. The stock’s beta is 0.88. Besides these, the trailing price-to-sales (P/S) ratio of 0.98, the price-to-book (PB) ratio of 36.33, and the price-to-cash flow ratio of 42.76 may also be considered.
Financial Health
In the three months ended July 30, Chewy Inc.’s quick ratio stood at 0.50, while its current ratio was 0.90, showing that the company is not able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 28.30% percent. In the year ended July 30, EBITDA margin amounted to 1.81%, whereas operating margins totaled 0.60%. Based on annual data, CHWY earned $2.83 billion in gross profit and brought in $10.1 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 24.80%. Return on equity (ROE) for the past 12 months was 27.20%.
According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CHWY’s revenue rose 12.55% to $2.71 billion during the quarter, while net income inched up to $2.78 billion. While analysts expected Chewy Inc. to report -$0.05 quarterly earnings, the actual figure was $0.04 per share. During the quarter, the company generated $9.88 million in EBITDA. The liabilities of Chewy Inc. were 2.54 billion at the end of its most recent quarter ended July 30, and its total debt was $528.4 million. The value of shareholders’ equity is $430.33 million.
Technical Picture
This quick technical analysis looks at Chewy Inc.’s (CHWY) price momentum. With a historical volatility rate of 69.66%, the RSI 9-day stood at 20.47% on 31 August.
With respect to its five-day moving average, the current Chewy Inc. price is down by -6.91% percent or -$1.78. At present, CHWY shares trade -26.82% below its 20-day simple moving average and -31.93% percent below its 100-day simple moving average. However, the stock is currently trading approximately -37.23% below its SMA50 and -41.71% below its SMA200.
Stochastic coefficient K was 25.92% and Stochastic coefficient D was 23.11%, while ATR was 1.32. Given the Stochastic reading of 11.95% for the 14-day period, the RSI (14) reading has been calculated as 22.37%. As of today, the MACD Oscillator reading stands at -0.08, while the 14-day reading stands at -0.91.
Analyst Ratings
UBS reiterated its a Sell rating on Chewy Inc. (NYSE: CHWY) in a note to investors. The analysts firm has however raised their price target to $25, representing a possible 7.77% increase in the stock price. Chewy Inc. (CHWY) has been rated Overweight by analysts. According to 2 brokerage firms, CHWY is a sell, and 12 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Chewy Inc. stock as buy, with 12 recommending it as overweight.
With a median target price of $35.00, the current consensus forecast for the stock is $6.00 – $50.00. Based on these forecasts, analysts predict Chewy Inc. (CHWY) will achieve an average price target of $34.68.
