Morgan Stanley Investment Managem.. recently announced the acquisition of new stake in Chewy Inc. (NYSE:CHWY). The institutional investor has increased its shareholding in the Consumer Cyclical company by 85.01% to 22.96 million shares with purchase of 10.55 million shares. This fresh investment now brings its stake to 27.26% valued currently at $1.21 billion. In addition, Baillie Gifford & Co. raised its holdings by 0.17 million to 5.35 million shares. And The Vanguard Group, Inc. has lifted its position by 27.35% or 1.09 million shares – to 5.06 million shares.
With over 8.42 million Chewy Inc. (CHWY) shares trading Tuesday and a closing price of $69.43 on the day, the dollar volume was approximately $584.5 million. The shares have shown a positive weekly performance of 22.54% and its price on 09/01/20 gained nearly 13.69%. Currently, there are 401.41M common shares owned by the public and among those 60.19M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for CHWY have a consensus price objective of $56.55. The analysts have set the share’s price value over the next 12 months at a high of $70.00 and a low of $45.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Chewy Inc. stock is 2.10 for the next 12 months. The average price target is -31.75% below its last price level and a downside to the estimated low will see the stock lose -54.29% over that period. But an upside of 0.81% will see the stock hit the forecast high price target while mean target price for the stock is $55.00.
Insiders at the company have transacted a total of 141 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 11 of these insider trades were purchases, accounting for 3,992,735 shares. Insider sales of the common stock occurred on 130 occasions, with total insider shares sold totaling 7,367,028 shares.
The top 3 mutual fund holders in Chewy Inc. are Morgan Stanley Instl. Fund-Growth, Robeco Capital Gr. Fds. – Global, and Vanguard US Growth Fund. Morgan Stanley Instl. Fund-Growth owns 3.74 million shares of the company’s stock, all valued at over $196.47 million. The company bought an additional 8519.0 shares recently to bring their total holdings to about 4.44% of the shares outstanding. Robeco Capital Gr. Fds. – Global bought 0.15 million shares to see its total holdings expand to 2.15 million shares valued at over $112.85 million and representing 2.55% of the shares outstanding. Vanguard US Growth Fund now owns shares totaling to 2.29% of the shares outstanding.
Shares of Chewy Inc. (NYSE: CHWY) opened at $61.95, up $0.88 from a prior closing price of $61.07. However, the script later closed the day at $69.43, up 13.69%. The company’s stock has a 5-day price change of 22.54% and 43.99% over the past three months. CHWY shares are trading 139.41% year to date (YTD), with the 12-month market performance up to 108.56% higher. It has a 12-month low price of $20.62 and touched a high of $61.84 over the same period. Currently, 8.42 million shares have been traded, compared to an average intraday trading volume of 3.94 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 23.21%, 34.55%, and 81.79% respectively.
Institutional ownership of Chewy Inc. (NYSE: CHWY) shares accounts for 97.30% of the company’s 401.41M shares outstanding. Mutual fund holders own 47.43%, while other institutional holders and individual stakeholders account for 47.74% and 2.99% respectively.
It has a market capitalization of $26.55B. The earnings-per-share (ttm) stands at -$0.68. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.91% over the week and 5.14% over the month.
Analysts forecast that Chewy Inc. (CHWY) will achieve an EPS of -$0.16 for the current quarter, -$0.13 for the next quarter and -$0.18 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.25 while analysts give the company a high EPS estimate of -$0.06. Comparatively, EPS for the current quarter was -$0.21 a year ago. Earnings per share for the fiscal year are expected to increase by 5.70%, and 61.20% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Chewy Inc. (CHWY) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 5 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the CHWY, a number of firms have released research notes about the stock. Wells Fargo stated their Overweight rating for the stock in a research note on August 28, 2020, with the firm’s price target at $60-$70. Cleveland Research coverage for the Chewy Inc. (CHWY) stock in a research note released on July 15, 2020 offered a Buy rating with a price target of $60. Morgan Stanley was of a view on June 22, 2020 that the stock is Equal-Weight, while Wedbush gave the stock Outperform rating on June 10, 2020, issuing a price target of $53- $55. UBS on their part issued Neutral rating on June 10, 2020.