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Chewy, Inc. (NYSE:CHWY) Chief Executive Officer Sumit Singh recently sold shares of the company, according to a filing with the Securities and Exchange Commission. On April 2, Singh sold 8,552 shares of Class A Common Stock at an average price of $33.3508, amounting to a total transaction value of approximately $285,216. Following this sale, Singh holds 62,096 shares indirectly through his spouse. The transaction comes as Chewy, with a market capitalization of $13 billion and annual revenue of $11.86 billion, trades at a P/E ratio of 33.76. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.
The sale was part of a "sell to cover" transaction executed under a Rule 10b5-1 trading plan. This plan was adopted by Singh’s spouse to cover tax obligations related to the vesting of restricted stock units (RSUs). InvestingPro data shows the company maintains strong financial health, with a notable return on assets of 12.67%.
Singh’s role as CEO and director at Chewy places him at the helm of the online pet retailer, which has been navigating a competitive market landscape. Investors often closely monitor insider transactions, such as these, as potential indicators of a company’s financial health or future prospects. For deeper insights into Chewy’s valuation and financial health, including 12 additional ProTips and comprehensive analysis, explore the full research report available on InvestingPro.
In other recent news, Chewy Inc . reported fourth-quarter results that exceeded consensus expectations for both revenue and EBITDA, attributed to an increase in active customers and improved operating leverage. Piper Sandler maintained an Overweight rating and a $40 price target, expressing confidence in Chewy’s growth prospects in the pet industry, alongside a positive outlook for pet population growth into 2026. Meanwhile, TD Cowen adjusted Chewy’s price target to $44 from $45, retaining a Buy rating due to strong financial performance and favorable guidance for the first quarter. RBC Capital Markets reiterated an Outperform rating with a $42 price target, highlighting increased customer additions and margin improvements as positive indicators for Chewy’s future. CFRA also adjusted its price target to $42 from $45 while maintaining a Strong Buy rating, citing Chewy’s strong financial footing and expansion in veterinary services. Analysts from Piper Sandler noted that Chewy’s minimal exposure to direct foreign sourcing positions it well to manage tariff impacts, with a potential price hike of less than 1% to offset costs. Chewy’s strategic initiatives, including the expansion of its veterinary services and focus on premium products, are seen as drivers of future growth and profitability. These recent developments underscore Chewy’s robust position in the market and its strategic efforts to enhance profitability and customer growth.
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