Chewy Pet Care Suppliers (New York Stock Exchange: CHWY) and Petco (NASDAQ: WOOF) saw their shares surge Thursday after Roaring Kitty posted a photo of a dog on social media site X. Chewy and Petco rose 28.48% and 11.11%, respectively, on much higher-than-usual trading volumes. However, those gains were mostly gone by the end of today’s session. Still, today’s wild ride highlights Roaring Kitty’s influence on the market.
It’s worth noting that both stocks have fairly high short interest, with Chewy accounting for 13.8% of the total float and Petco 19.8%. However, this figure is nowhere near the figure observed by GameStop (New York Stock Exchange: GME) in 2021, when the meme stock craze was in full swing.
However, Roaring Kitty wasn’t the only thing Chewy had going on today. In fact, it announced a $500 million share repurchase agreement with BC Partners, which is in addition to its existing $500 million share repurchase program. Mizuho Securities analyst David Bellinger, who has a Hold rating and a $20 price target, sees this as a sign of Chewy’s growing free cash flow and ability to return capital.
Are CHWY and WOOF Stock a Buy?
Of the companies mentioned above, Wall Street analysts rate neither stock as a buy. In fact, they expect their prices to drop by more than 10% over the next 12 months, as shown below. Interestingly, professional money managers seem to agree, as neither stock has a positive hedge fund signal.
News Source : www.tipranks.com
Gn bussni
