Why Chewy (CHWY) Stock Is Trading Lower
Portfolio Pulse from Henry Khederian
Chewy Inc (CHWY) shares fell 4.38% to $29.74 after announcing a public offering of 16.67 million shares by its largest shareholder, Buddy Chester Sub LLC, at $30 per share. Chewy will repurchase $300 million of its Class A stock from the seller, separate from its existing $500 million repurchase program. The offering is expected to close by September 23.
September 20, 2024 | 2:51 pm
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Chewy's stock declined 4.38% following the announcement of a public offering of 16.67 million shares by its largest shareholder at $30 per share. Chewy will also repurchase $300 million of its Class A stock from the seller, impacting the stock price.
The decline in Chewy's stock price is due to the announcement of a large public offering by its largest shareholder, which can dilute existing shares. The concurrent $300 million share repurchase may offset some negative sentiment but not enough to prevent the price drop.
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