Argos Holdings GP LLC, a majority owner (more than 10%) of Chewy Inc. (CHWY) sold shares worth $620.99 million last week. This is the sixth big Informative Sell shares by Argos Holdings this year.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
Chewy is an American online retailer of pet food and pet-related products, acting as a convenient one-stop shop for pet parents and partners globally.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC, Argos Holdings sold 19,827,242 CHWY shares on December 13 in multiple tranches at a weighted average price of $31.32 apiece. The sale was part of a registered public offering as described in the filing. Argos exercised 19,827,242 convertible options to make the sale.
CHWY stock currently has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $1.4 billion undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is CHWY a Good Stock to Buy?
Analysts remain divided on Chewy stock’s trajectory. On TipRanks, CHWY stock has a Moderate Buy consensus rating based on 15 Buys and six Hold ratings. The average Chewy price target of $37.58 implies 16.5% upside potential from current levels. Year-to-date, CHWY shares have gained 36.5%.
