Satish Mehta, Chief Technology Officer of Chewy (NYSE: CHWY), sold 6,056 shares of the company on December 2, 2023, in a transaction valued at approximately $204,268.88. The shares were sold at an average price of $33.73 each. Following this transaction, Mehta retains ownership of 238,574 shares, equating to a total value of around $8,047,101.02, representing a 2.48% reduction in his stake.
This sale was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC), which is accessible online. On the same day, Chewy’s stock experienced a slight downturn of 0.2%, trading at $33.21 during midday sessions, with 301,417 shares exchanged. This is significantly lower than the company’s average trading volume of 6,630,588 shares.
Market Overview and Institutional Investment
As of now, Chewy holds a market capitalization of $13.78 billion, with a price-to-earnings ratio of 95.11 and a P/E/G ratio of 8.29. The stock has displayed considerable volatility, with a 12-month low of $29.83 and a high of $48.62. Its moving averages indicate a 50-day average of $35.58 and a 200-day average of $38.68.
Institutional investors have shown substantial interest in Chewy, with recent activity indicating a strong tendency towards acquiring additional shares. Notably, Quent Capital LLC purchased a stake valued at $27,000 in the third quarter, while Osterweis Capital Management Inc. acquired shares worth approximately $30,000 during the second quarter. Other notable investments include Princeton Global Asset Management LLC, which invested $40,000, and Strategic Advocates LLC, which invested $43,000. Overall, institutional ownership of Chewy stands at an impressive 93.09%.
Analysts’ Ratings and Future Expectations
Several financial analysts have recently reassessed their ratings for Chewy shares, reflecting a generally optimistic outlook. On September 25, 2023, Moffett Nathanson upgraded the stock from “neutral” to “buy,” establishing a target price of $48.00. Similarly, Seaport Res Ptn elevated its rating from “hold” to “strong-buy” in early September.
In contrast, Royal Bank of Canada adjusted its target price down from $44.00 to $43.00, maintaining an “outperform” rating. Overall, the consensus rating for Chewy stands at “Moderate Buy,” with an average target price of $46.17, according to data from MarketBeat.
Chewy, Inc., together with its subsidiaries, operates in the e-commerce space, specializing in pet food, supplies, and health-related products. The company continues to expand its reach through retail websites and mobile applications, catering to a diverse range of pets including dogs, cats, and small animals.
As the market remains dynamic, the activities of key executives, alongside institutional investments and analysts’ forecasts, will continue to shape investor perceptions and the company’s trajectory moving forward.
