Chewy Inc. [NYSE:CHWY] prices rallied 3.88% on Friday.
With a current price of $63.97, CHWY is active in the Internet Retail industry and it looks to be on-track for a five-day run of 8.89%.
In addition, CHWY’s high over the last year is $74.84 and the low is $20.62. Over the last two 52 weeks, the company is trading 142.54%, while the S&P 500 is trading 1.11%.
Wait and see
Holding a Market Cap of $24.15 billion, Chewy Inc. has seen a trading range over the last year of $20.62-$74.84.
For the last five days, CHWY is up from its last closing price. The average shares trading hands each day is 4.28M, with average 10-day volume coming in at 2.92 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for CHWY. When we apply the Elder Force Index to Chewy Inc., we are seeing an Elder Force Indicator number of 3304220.41.
Recent Performance
The company’s enterprise value has gone from $21.12B to $17.34B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, CHWY made a profit of 433.36 million. Chewy Inc. also saw quarter revenue growth year over year of 37.19%. In addition, the company has operating cash flow of $67.77 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 59.40 compared to the 50-day moving average of 57.80. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. CHWY currently holds a 9-day RSI of 71.25%, while 100-day RSI stands at 56.18%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. CHWY’s 9-day MACD is 2.96 and the company’s 100-day MACD stands at 8.88.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 12.35% by insiders and 103.53% by institutions. Regarding institutional holdings, Morgan Stanley owns 27.16%, while the second top holder, Baillie Gifford and Company, currently owns 5.99%.
Over the last six months, insiders have sold 10,911 with the most recent transaction from Bowman Stacy, Principal Accounting Officer, with a sell at price 54.89 per share.
Conclusion
Overall, the recommended rating for CHWY is Moderate Buy. Currently, the company has 12 analysts watching the stock, and the average quarterly earnings estimate is -0.14. Quarterly revenue estimates are averaging 1.72B with the high estimate reaching 1.73B and the low at 1.71B.
To review, the current 1-year target estimate is sitting at 63.18, while the current price 63.97. Based on this, we expect some pullback on the stock over time given our above analysis.
