Chewy Inc., a prominent player in the online pet retail space, experienced an uptick in its stock price on Monday, a change prominently influenced by significant hedge fund activity. Among the notable investors, Viking Global Investors, under the leadership of Andreas Halvorsen, took a decisive step by nearly tripling its holdings in Chewy. This move signals a strong belief in the durability of Chewy’s core business, particularly its subscription-driven revenue model, despite the company grappling with notable challenges in recent times.
On December 18, 2025, Viking Global Investors expanded its position by an impressive 147%, acquiring over eight million shares. Following this, the firm’s total ownership rose to approximately 13.5 million shares. Valued at around $437 million, this stake reflects Viking's assessment that the current market price undervalues Chewy's business prospects. The significant accumulation points toward growing confidence that the risks facing the company are contained at present levels, suggesting a longer-term investment horizon prioritizing fundamental stabilization and sentiment recovery.
From a broader market perspective, Monday’s trading session displayed a mixed performance. The Russell 2000 index, often reflective of small-cap stocks, saw a modest rise of 0.21%, while the S&P 500 edged up by 0.08%. Chewy’s share price gains were notably more pronounced compared to these benchmarks, aligning with the positive movement in the consumer discretionary sector, as evidenced by a 0.4% rise in the State Street Consumer Discretionary Select Sector SPDR ETF (AMEX: XLY).
Examining Chewy’s technical indicators reveals a somewhat complex picture. The stock was trading approximately 5% above its 20-day simple moving average (SMA), a short-term indicator suggesting some upward momentum. Conversely, it remained 4.7% below its 100-day SMA, indicating that, on a longer-term basis, the price point is subdued. Over the past year, Chewy shares have declined about 4.53%, positioning them nearer to their 52-week low than the high. This reflects a degree of persistent market pressure despite recent positive developments.
Delving deeper into momentum metrics, the Relative Strength Index (RSI) was recorded at 44.51, a level that signals neither overbought nor oversold conditions, but rather neutrality. The Moving Average Convergence Divergence (MACD) indicator, however, was trailing below its signal line, pointing to prevailing bearish pressure. The coexistence of neutral RSI and bearish MACD values suggests a tenuous balance in market sentiment, with momentum lacking clear directionality.
From a technical standpoint, investors might view $35.00 as a significant resistance level for Chewy stock, while support could be found around $31.50. These thresholds may serve as key markers in the short term, offering insight into potential price movements and investor sentiment levels.
Looking ahead, market participants are attentive to Chewy's forthcoming earnings release anticipated in March. Current analyst forecasts estimate earnings per share (EPS) of 20 cents, reflecting a decrease from 28 cents in the same quarter of the previous year. Meanwhile, revenue projections stand at approximately $3.26 billion, marginally up from $3.25 billion a year earlier. Despite the anticipated earnings decline, the consensus analyst rating remains a Buy, bolstered by an average share price target of $45.62. This suggests that the stock is potentially trading at a premium relative to expectations, underscoring diverse perspectives on future performance.
The Benzinga Edge scorecard offers a quantitative snapshot of Chewy’s market standing relative to peers, revealing specific strengths and areas of caution. The stock's Value score, measuring relative price attractiveness, is low at 9.65 out of 100, signifying that Chewy is trading at a substantial premium to comparable companies. Conversely, the Growth score is moderate at 46.96 out of 100, indicating discernible potential for expansion, albeit moderated by ongoing operational difficulties. Regarding Momentum, Chewy scores a weak 12.44 out of 100, reflecting underperformance against broader market benchmarks.
These combined metrics depict a ‘High-Flyer’ scenario where the company's growth potential is recognized but balanced by significant valuation premiums and subdued momentum. Investors may exercise caution as the company navigates its current transitional phase.
Chewy’s weight in important exchange-traded funds (ETFs) also plays a critical role in its stock dynamics. It accounts for 1.53% of the SPDR S&P Retail ETF (NYSE: XRT), 2.50% of the Amplify Online Retail ETF (NYSE: IBUY), and a larger 4.41% of the ProShares Online Retail ETF (NYSE: ONLN). These allocations imply that fluctuations in ETF inflows or outflows could trigger correspondingly significant buying or selling pressure on Chewy’s shares.
As of the latest trading data from Benzinga Pro, Chewy's stock climbed by 5.94% to reach $34.07. This price action marks a notable intraday advance against a backdrop of broader market indecision.
In summary, Chewy Inc. currently occupies a complex stance within the market. Substantial backing from a leading hedge fund reflects confidence in long-term corporate resilience, but technical indicators and consensus earnings expectations offer a mixed view. With the company positioned near its yearly stock lows and navigating valuation premiums, investors are advised to carefully consider both risks and opportunities as Chewy approaches its next quarterly financial disclosure.