'Chewy Drops As Morgan Stanley Shops Big Block: Subsidiary Of PetSmart Selling ~12.3M Shares Via Morgan Stanley, According To Form 144 Filing Late Tues; Morgan Stanley Re-Offering CHWY Shares In Range Of $20.45-$20.85" - XM
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Chewy's stock price fell after a Form 144 filing revealed that a subsidiary of PetSmart is selling approximately 12.3 million shares of CHWY through Morgan Stanley. The shares are being re-offered in the price range of $20.45-$20.85.
January 10, 2024 | 1:49 pm
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NEUTRAL IMPACT
Morgan Stanley's involvement in re-offering Chewy's shares may not significantly impact its stock price in the short term, as this activity is part of their regular brokerage services.
While Morgan Stanley is facilitating the transaction, such brokerage activities are typical for large banks and may not have a direct impact on Morgan Stanley's stock price. The focus is on the shares being sold, not on the facilitator.
CONFIDENCE 75
IMPORTANCE 30
RELEVANCE 50
NEGATIVE IMPACT
Chewy's stock is likely to experience downward pressure in the short term due to the large block of shares being sold by a PetSmart subsidiary.
The sale of a large block of shares often leads to downward pressure on the stock price due to increased supply. The involvement of a major shareholder like a PetSmart subsidiary indicates a significant change in ownership, which can be viewed negatively by the market.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100