Chewy Becomes the Latest Stock Pick of Roaring Kitty
Chewy stock is volatile Monday after Keith Gill, the investor known as Roaring Kitty, disclosed a 6.6% stake in the online pet retailer.
Chewy (CHWY) stock was trading more than 26% higher in Monday's pre-market session after Keith Gill, the investor also known as Roaring Kitty, disclosed a noteworthy position in the online pet food and products retailer. However, the stock quickly came back down to earth and was last seen 6% lower.
In a filing with the Securities and Exchange Commission (SEC), Gill disclosed a 6.6% stake in Chewy worth just over $245 million based on Friday's closing price of $27.24. In total, Gill owns roughly 9 million shares of the consumer discretionary stock.
Roaring Kitty helped spark a massive short squeeze in GameStop (GME) stock back in 2021 and returned to the spotlight with a cryptic post on X in mid-May, igniting another round of meme stock mania.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Gill apparently now has his sights set on Chewy. The pet supplies company was founded by Ryan Cohen in 2011, and he was CEO of the CHWY until 2018. Cohen has since left Chewy and is now chairman and CEO of GameStop.
Is Chewy stock a buy, sell or hold?
After a slow start to the year, Chewy is now up over 60% in the past three months thanks in part to a solid fiscal first-quarter earnings report. And Wall Street is bullish on the stock. According to S&P Global Market Intelligence, the consensus recommendation among the 28 analysts following CHWY that it tracks is a Buy.
However, analysts' price targets have struggled to keep up with CHWY’s surging share price in recent months. Currently, the average price target of $26.08 is right around where the stock stands today.
Financial services firm Wedbush is one of the more bullish outfits on CHWY stock with a Buy rating at $28 price target.
"CHWY continues to gain market share and materially expand margins in a weak industry environment while the company indicated encouraging pet household formation trends with net adoptions turning positive for the first time since 2022," Wedbush analyst Seth Basham said in a May 30 note following Chewy's earnings release. "Additionally, benefits from cross-sales of pharmacy products continues to drive net spending per average customer (NSPAC) higher with further room for improvement and additional upside potential if industry demand normalizes."
Wedbush's $28 price target represents implied upside of roughly 10% to current levels.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Setting Objective Criteria for Employee Bonuses Aligned With Company Goals
When employees win, the company wins.
By Stephen Nalley Published
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and More
What is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
By Emma Patch Published
-
Potential Ripple Effects of Taxing Unrealized Capital Gains
The proposed tax on unrealized gains would be limited to those with a net worth above $100 million, but some see a broad impact on markets and businesses.
By Brian Skrobonja, Chartered Financial Consultant (ChFC®) Published
-
Succession Musts: Thoughtful Planning and Frank Discussions
When it comes to passing on the family business, you don't want anyone to be surprised about who will control or inherit the business after the owner's death.
By David Handler, J.D. Published
-
How to Navigate Finances as a Blended Family
If you’re planning to become part of a blended family, consider these financial issues as you and your spouse start a new life.
By Ella Vincent Published
-
Here's How to Find Your Way Out of the Inherited IRA Maze
To navigate complex rules on inherited IRAs and RMDs, start by breaking down key terms and common scenarios. A clearer picture of your next steps will emerge.
By Evan T. Beach, CFP®, AWMA® Published
-
Stock Market Today: Stocks Rally on Strong Netflix Earnings
Mega-cap tech leads the charge as markets rise for a sixth straight week.
By Dan Burrows Published
-
Why American Express Earnings Have the Dow Stock Lower
American Express is the worst Dow Jones stock Friday after the payments giant reported a top-line miss in its third quarter. Here's what you need to know.
By Joey Solitro Published
-
CVS Stock Falls After Karen Lynch Ouster: What to Know
CVS stock is lower Friday after the embattled healthcare company said Karen Lynch is out as CEO, effective immediately
By Joey Solitro Published
-
Netflix Stock Jumps to the Top of the S&P 500 After Earnings. Here's Why
Netflix stock is spiking Friday after the streaming giant beat third-quarter expectations and gave an upbeat fourth-quarter outlook.
By Joey Solitro Published