Chewy Insiders Offload Over $789 Million in Stock

Insiders at Chewy, Inc. (NYSE: CHWY), an online retailer specializing in pet food and related products, have made notable stock transactions, as indicated by recent SEC filings. On September 23, 2024, these insiders sold a total of 26,870,748 shares of Class A common stock at $29.40 per share, resulting in an estimated $789 million in total transaction value.

This sale was part of a registered public offering that concluded on the same day, leading to a complete divestiture of the insiders’ remaining ownership of Class A shares in the company.

Chewy, Inc. has established itself as a significant player in the retail-catalog and mail-order industry, catering to a growing customer base that values its convenient online services for pet supplies. The substantial insider stock sale is noteworthy and typically draws attention from investors and market analysts, as it may provide insights into the insiders’ views on the company’s future.

While investors often interpret such sales as potential indicators of the company’s performance or valuation, it’s essential to recognize that insiders frequently sell shares for personal financial reasons that do not necessarily reflect their expectations of the company.

The SEC filings contained additional details regarding the transactions, including that the Class A common shares were issued following the conversion of Class B common stock, which holders can convert on a one-for-one basis at their discretion. The documents also clarified the relationships of the reporting entities involved in holding and managing the securities.

Michael Chang acted as Attorney-in-Fact for those involved in the stock sale. This recent financial activity at Chewy is likely to capture the attention of both current and potential investors as they evaluate the company’s stock and its future in the competitive online pet product retail market.

In related news, Chewy has shown strong financial performance, with its second-quarter earnings and revenue exceeding expectations. The company posted an EBITDA of $145 million, surpassing Wall Street’s forecast of $112 million, while net sales grew by 3% to $2.86 billion. Furthermore, Chewy announced a $500 million public offering of its Class A shares by BC Partners Advisors LP, alongside a decision to repurchase $300 million worth of its shares from the same entity.

This move is seen positively, reducing BC Partners’ stake in Chewy from about 70% to approximately 57%. Analysts from various firms such as Piper Sandler, Barclays, Goldman Sachs, and Morgan Stanley maintain confidence in Chewy’s growth trajectory, adjusting their ratings and price targets to reflect this optimism.

Morgan Stanley has reiterated an Overweight rating for Chewy, predicting an EBITDA exceeding consensus estimates at $750 million for the fiscal year 2025. Alongside its expansion into veterinary care services, these developments highlight the company’s commitment to exploiting growth and profitability opportunities.

For investors examining Chewy’s financial health and growth prospects, the company boasts a market capitalization of $12.53 billion and a P/E ratio of 35.75, showcasing a strong presence. In the last twelve months up to Q2 2025, Chewy’s revenue reached $11.31 billion, indicating a steady growth rate of 4.36%.

Chewy’s balance sheet reveals more cash than debt, which may assuage concerns regarding the recent insider sales. Analysts express positivity about the company’s future, forecasting net income growth for this year. The stock has delivered a remarkable 64.0% return over the past year, and eight analysts have raised their earnings estimates for the upcoming period, suggesting ongoing positive momentum.

For those interested in further analysis and insights, additional information about Chewy, Inc. can provide valuable guidance for making informed investment decisions in the dynamic online pet product retail market.