Is it Time to Sell Your Chewy (CHWY) Shares?

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 3.06% was recorded by its Investor Class: ARTMX, 3.11% by its Advisor Class: APDMX, and 3.12% by its Institutional Class: APHMX, in the third quarter of 2021, all outpacing the Russell Midcap® Growth Index that delivered a -0.76% return, and the Russell Midcap® Index that was down by -0.93% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Artisan Mid-Cap Fund, in its Q3 2021 investor letter, mentioned Chewy, Inc. (NYSE: CHWY) and discussed its stance on the firm. Chewy, Inc. is a Dania Beach, Florida-based e-commerce company with a $30.4 billion market capitalization. CHWY delivered a -26.53% return since the beginning of the year, while its 12-month returns are down by -4.66%. The stock closed at $66.04 per share on November 22, 2021.

Here is what Artisan Mid-Cap Fund has to say about Chewy, Inc.  in its Q3 2021 investor letter:

“Chewy is the largest online pet retailer in the US. At ~15% penetration, we believe the pet supply market is in the early stages of shifting online. While the company continues to gain share, its rate of growth is slowing as it laps difficult 2020 comps (customers gravitated to offline channels amid the pandemic). We believe the stock’s valuation adequately captures the likely cash flow growth ahead, and we exited our small GardenSM position.”

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Based on our calculations, Chewy, Inc. (NYSE: CHWY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CHWY was in 32 hedge fund portfolios at the end of the first half of 2021, compared to 43 funds in the previous quarter. Chewy, Inc. (NYSE: CHWY) delivered a -25.23% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.