Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

A highly collaborative investment professional and US software research analyst with 10+ years of international experience in equity research, treasury operations, and trading positions across multiple asset classes at leading multinational banks Citibank and Morgan Stanley, UHNWI-backed family office and European independent equity research firm. A respectable background in equity capital markets, corporate treasury, investment banking operations, equity research analysis and portfolio management.

Chewy: CFO Stepped Down, Weak 3Q Guidance, More Selling Pressure Is Likely

Chewy: Post-Pandemic Slowdown Is Here To Stay While Insiders Are Cashing Out

Chewy: IPO Lifted by Animal Spirits; PetSmart Reaping the Benefits Already

Chewy IPO: Lots of Barking and Little Bite; Balance Sheet and PetSmart Relationship Raise Concerns

Equity Bottom-Up

<ul>
<li>Chewy will report 1QFY23 financial results after the market close on Wednesday, May 31, 2023. Management expects 1QFY23 net sales of between $2.72B and $2.74B, representing 12%-13% y/y growth.</li>
<li>I calculate that insiders such as CEO &amp; Director Mr. Singh, CFO Mr. Marte, and other management team sold ~$28M worth of Chewy shares during the last six months.</li>
<li>My bear case scenario suggests downside on the continued slowdown in consumables, hard goods sales, intense competition in the pet insurance and pet health care segments, and uncertain macro environment.</li>
</ul>


Chewy will report 1QFY23 financial results after the market close on Wednesday, May 31, 2023. Management expects 1QFY23 net sales of between $2.72B and $2.74B, representing 12%-13% y/y growth.
I calculate that insiders such as CEO &amp; Director Mr. Singh, CFO Mr. Marte, and other management team sold ~$28M worth of Chewy shares during the last six months.
My bear case scenario suggests downside on the continued slowdown in consumables, hard goods sales, intense competition in the pet insurance and pet health care segments, and uncertain macro environment.


Insiders Continue To Sell Chewy Stock. FY23 Guidance Seems Overly Optimistic