Benzinga | Sep 2, 2021 07:55AM EDT

Why Chewy's Stock Is Trading Lower Today

Chewy Inc (NYSE:CHWY) is trading significantly lower Thursday after the company announced worse-than-expected second-quarter financial results.

Chewy reported quarterly revenue of $2.16 billion, which came in below the estimate of $2.17 billion. The company reported adjusted EBITDA of $23.3 million, representing an increase of 50.50% year over year.

Chewy reported a net loss of $16.7 million.

"Customer engagement is growing, and we are confident in our ability to deliver strong results while navigating uncertain market conditions due to the ever-evolving COVID-19 pandemic," said Sumit Singh, CEO of Chewy.

Analyst Assessment: Barclays and Morgan Stanley lowered price targets on the stock following the second-quarter results:

* Barclays analyst Justin Kleber maintained Chewy with an Equal-Weight rating and lowered the price target from $93 to $90.

* Morgan Stanley analyst Lauren Schenk maintained Chewy with an Equal-Weight rating and lowered the price target from $83 to $81.

CHWY Price Action: Chewy has traded as high as $120 and as low as $51.25 over a 52-week period.

The stock was down 9.62% at $79.02 at time of publication.

Photo by Anna Dahlhaus from Pixabay.