JMP Securities analyst Patrick Walravens has maintained their bullish stance on CHWY stock, giving a Buy rating today.
Patrick Walravens has given his Buy rating due to a combination of factors including Chewy’s solid financial performance and promising growth initiatives. The company reported strong fourth-quarter results with net sales and adjusted EBITDA surpassing consensus expectations. Chewy’s active customer base has grown for the first time in eight quarters, signaling a positive inflection point, and management anticipates continued growth in this area.
Chewy’s strategic initiatives, such as the expansion of sponsored ads and the development of Chewy Vet Clinics, have contributed to gross margin improvements and customer acquisition. The company’s focus on enhancing its mobile app has also led to significant increases in app installs and first-time purchases. These factors, along with Chewy’s effective capital allocation and share repurchase strategies, underpin Walravens’s confidence in the company’s ability to maintain its market momentum and achieve further growth.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CHWY in relation to earlier this year.