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In a recent transaction, David Reeder, the Chief Financial Officer of Chewy, Inc. (NYSE:CHWY), sold a substantial amount of the company’s Class A common stock. According to a filing with the Securities and Exchange Commission, Reeder sold 307,558 shares on February 7, 2025. The shares were sold at prices ranging from $37.354 to $38.226, amounting to a total value of approximately $11.5 million. The sale comes as Chewy’s stock has shown remarkable strength, with InvestingPro data showing a 117% return over the past year and the company maintaining a market capitalization of $15.26 billion.
Following these sales, Reeder no longer holds any direct ownership of Chewy’s shares. The sales were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to sell stock at predetermined times to avoid accusations of insider trading. Analysts maintain a positive outlook on the stock, with price targets ranging from $30 to $47, according to InvestingPro data.
Additionally, the filing notes that Reeder holds restricted stock units (RSUs) that are subject to time-vesting conditions. These RSUs represent a right to receive shares of Chewy’s Class A common stock in the future, contingent upon his continued employment with the company. The company maintains a "GOOD" financial health score according to InvestingPro’s comprehensive analysis, with strong metrics across growth and profitability dimensions.
In other recent news, Chewy Inc . has been in the spotlight with several developments. Mizuho (NYSE:MFG) Securities maintained an Outperform rating on the company, highlighting the potential of Chewy’s consumer-facing app to double its penetration from about 20% of total revenues, a goal seen as achievable in the next two years. The firm also noted the strength of Chewy’s market position and its strategies to enhance its mobile app capabilities for growth and customer engagement.
Meanwhile, Guggenheim increased its price target for Chewy to $42.00 from $36.00, maintaining a Buy rating. The firm’s confidence in Chewy’s performance is based on factors such as the expected rebound in year-over-year net active customer growth and the anticipated return to normal pricing dynamics in the pet food industry.
In a significant partnership, Maev, a rapidly expanding pet brand, announced its new product availability on Chewy, marking a key step in the frozen raw dog food market. This move is expected to make Maev’s premium raw dog food more accessible to customers nationwide.
On another note, Mizuho highlighted Chewy’s successful transition to an in-house advertising platform, which aligns with the company’s strategic move to use its own first-party software and technology stack. This development is seen as a positive step that positions Chewy to reduce costs and offer vendors a more dynamic self-service model with improved real-time analytics. Mizuho analysts believe that retail media could grow from about 1% of Chewy’s revenues to around 3% over the next few years.
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