Is Chewy Inc [CHWY] a good investment? Don’t be fooled by its recent momentum

The price of Chewy Inc (NYSE:CHWY) shares last traded on Wall Street rose 4.76% to $21.13.

Based on available information, 30 analysts follow Chewy Inc (NYSE:CHWY). The consensus rating among analysts is ‘Overweight’. As we calculate the median target price by taking the range between a high of $48.00 and a low of $8.00, we find $32.00. Given the previous closing price of $20.17, this indicates a potential upside of 58.65 percent. CHWY stock price is now 10.29% away from the 50-day moving average and -33.28% away from the 200-day moving average. The market capitalization of the company currently stands at $9.09B.

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Among analysts, 11 rate the stock a hold while 14 rate it a buy. Brokers who have rated the stock have averaged $31.78 as their price target over the next twelve months.

With the price target reduced from $31 to $28, Morgan Stanley Upgraded its rating from Equal-Weight to Overweight for Chewy Inc (NYSE: CHWY).

In other news, Bowman Stacy, Interim CFO & CAO sold 11,423 shares of the company’s stock on Oct 18. The stock was sold for $208,356 at an average price of $18.24. Upon completion of the transaction, the Interim CFO & CAO now directly owns 215,116 shares in the company, valued at $4.55 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Sep 05, Interim CFO & CAO Bowman Stacy sold 900 shares of the business’s stock. A total of $22,497 was realized by selling the stock at an average price of $25.00. This leaves the insider owning 226,539 shares of the company worth $4.79 million. Insiders disposed of 30,168,766 shares of company stock worth roughly $637.47 million over the past 1 year. A total of 72.97% of the company’s stock is owned by insiders.

A candlestick chart of Chewy Inc (NYSE: CHWY) showed a price of $20.35 on Wednesday morning. During the past 12 months, Chewy Inc has had a low of $16.53 and a high of $52.88. As of last week, the company has a debt-to-equity ratio of 1.42, a current ratio of 0.93, and a quick ratio of 0.56. According to the stock market information, the enterprise value for the company is $8.69B, which is based on a 183.74 price-to-earnings ratio, a 7.16 price-to-earnings-growth ratio, and a beta of 0.95. The fifty day moving average price for CHWY is $19.16 and a two-hundred day moving average price translates $31.67 for the stock.

The latest earnings results from Chewy Inc (NYSE: CHWY) was released for Jul, 2023. According to the Internet Retail Company, earnings per share came in at $0.04, beating analysts’ expectations of -$0.05 by 0.09. This compares to $0.05 EPS in the same period last year. The net profit margin was 0.46% and return on equity was 20.56% for CHWY. The company reported revenue of $2.78 billion for the quarter, compared to $2.43 billion a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 14.26 percent. For the current quarter, analysts expect CHWY to generate $2.76B in revenue.

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