Chewy Stock Gets Boost After Analyst Upgrade

CHWY could clear its 50-day moving average for the first time since April

Digital Content Manager
Jun 21, 2022 at 10:17 AM
facebook X logo linkedin

The shares of Chewy Inc (NYSE:CHWY) were last seen up 13.3% at $32.52, following an upgrade from Wedbush to "outperform" from "neutral." The analyst also lifted its price target to $35 from $30, citing "little downside risk," thanks to the company's spending and customer retention.

Prior to today's analyst coverage, the brokerage bunch was split on CHWY, with nine saying "buy" or better, and eight saying "hold." Meanwhile, the 12-month consensus price target of $43.76 is a 38.8% premium to current levels. 

The pandemic darling lost 59.3% in the past 12 months, and is now far off its Feb. 16, 2021 all-time high of $120. The company's quarterly earnings earlier this month were well-received, which helped send CHWY off a two-year low, though this rally lost steam near the 50-day moving average shortly after. Today, however, the security could close above this trendline for the first time since early April, should these gains hold. 

Options traders have been bearish, and a shift in sentiment could put some wind at CHWY's back. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day put/call volume ratio of 1.12, which stands higher than 79% of readings from the past year. In other words, these traders are picking up puts at a quicker-than-usual clip. 

A short squeeze could also induce tailwinds. Short interest dropped 8.7% in the last two reporting periods, but still makes up 23.8% of the stock's available float, or over three days' worth of pent-up buying power. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI