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Sumit Singh, the Chief Executive Officer of Chewy, Inc. (NYSE:CHWY), has recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Singh sold 114,130 shares of Class A common stock at an average price of $37.696 per share, totaling approximately $4.3 million. The sale comes as Chewy's stock trades near its 52-week high of $39.10, having delivered an impressive 96% return over the past year.
Following this transaction, Singh retains ownership of 529,809 shares directly. Additionally, his spouse holds shares indirectly, with various holdings amounting to several thousand shares, as detailed in the filing. These transactions were conducted under a Rule 10b5-1 trading plan, which had been adopted by Singh on September 25, 2024.
Chewy, Inc., headquartered in Plantation, Florida, is a prominent player in the online retail space, specializing in pet food and products.
In other recent news, Chewy Inc (NYSE:CHWY). has been the subject of several significant developments. CFRA has upgraded Chewy's stock rating to Strong Buy, expecting a resurgence in the company's year-over-year growth in net active customers. Analysts anticipate Chewy's gross and operating margins to strengthen due to strategies including the expansion of private labels and entry into new business verticals.
The company's financial stability is highlighted by a positive cash flow, absence of long-term debt, and an ongoing share repurchase program. Chewy's largest shareholder, Buddy Chester Sub LLC, initiated a public offering of $500 million worth of Chewy's Class A common stock, while Chewy agreed to repurchase $50 million of its Class A common stock from the selling shareholder.
Mizuho (NYSE:MFG) Securities and Wolfe Research have upgraded Chewy's stock to Outperform, citing potential for revenue and margin growth. Chewy's third-quarter revenue reported at $2.88 billion, slightly exceeding the consensus of $2.86 billion, largely due to a 9.9% year-over-year increase in Autoship customer sales. These are the recent developments that investors should take into account.
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