Chewy Inc (NYSE: CHWY) rallied about 20% this afternoon after Roaring Kitty (Keith Gill) posted a picture of a dog on X.com.
Shares of the pet food and products retailer have now more than doubled versus their year-to-date low in late March.
Chewy stock gains retail investors’ attention
The equity market has been closely following updates from Roaring Kitty who inspired the historic short squeeze of 2021. His posts resulted in a massive increase in the GameStop stock price in recent months as well.
Chewy shares became a target of the meme trade today after what was a rather quiet week for the retail investors.
The New York listed firm, however, was not the only one that benefited from Keith Gill’s post on Thursday. Others including Petco and PetMed Express also caught retail interest after he posted a picture of the dog on X.com.
Watch here: https://www.youtube.com/embed/7x3o3pByGjg?feature=oembed
CHWY and GME are related
Chewy is the most notable pet stock that’s gaining after Roaring Kitty’s post on Thursday.
That’s also because CHWY and GME are related in that Ryan Cohen – the chief executive of GameStop is a founder of Chewy Inc. Shares of the video gaming merchandise retailer are also up some 5.0% at writing.
The development follows Chewy Inc repurchasing about $500 million worth of its shares from BC Partners – its largest shareholder.
Following the repurchase, the $13.6 billion company based out of Florida, United States has about $418 million shares outstanding. Wall Street currently has a consensus “overweight” rating on Chewy stock.
Chewy had a strong fiscal Q1
In May, Chewy reported its financial results for the first quarter that topped Street estimates. Sumit Singh – chief executive of the pet foods and products retailer said at the time:
Fiscal 2024 is off to a solid start. Chewy’s value proposition continues to resonate with our customers, and I’m proud of the teams at Chewy who are executing flawlessly on our strategic roadmap and the controllable elements of our business.
Last week, analysts at Jefferies reiterated their buy rating on Chewy shares and raised their price target to $31 that the NYSE listed firm has already hit on Thursday.
The investment firm remains positive on CHWY as it sees potential in it to achieve greater profitability and scale up moving forward. Jefferies analysts also bumped up their expectations for CHWY’s adjusted EBITDA for 2024 in their recent research note as well.
Note that Chewy stock traded at a high of $118 during the COVID pandemic in 2021. Our market analyst Crispus Nyaga sees upside in CHWY as well.
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