Chewy down after top investor BC Partners carves stake in $1 bln secondary offering, stock buyback

Chewy

24/06/2025 11:56

** Shares of online pet products retailer Chewy CHWY.N down 1.6% premarket to $42.65 after secondary offering, concurrent buyback

** Plantation, Florida-based co late Mon announced pricing offering of ~23.95 mln shares at $41.95 by its largest shareholder BC Partners

** Offering price represents 3.3% discount to last sale

** JP Morgan is sole underwriter

** In addition, Chewy to repurchase $100 mln worth of shares from the private equity firm

** Following the transactions, BC Partners owns ~47% of CHWY, per the prospectus filing

** CHWY had ~415 mln shares outstanding for ~$18 bln market cap through Mon close

** Through Mon, CHWY shares gained ~29% YTD

** Earlier this month, co reiterated its annual sales forecast of $12.3-$12.45 bln, sending its stock down 11% in a single session

** Avg rating among 31 analysts covering CHWY is "buy" and median PT is $45.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))