Charles Schwab Increases Its Stake in Chewy Stock. Should You Do the Same?
In recent news, (NYSE: CHWY) shares have seen a significant increase in interest as Charles Schwab Investment Management has been steadily increasing its stake in the online seller of pet supplies and services. Despite a decline of over 80% from its peak in 2021, Chewy has shown promise with positive earnings reports.
Charles Schwab’s investment in Chewy has been on the rise, with a 6% increase in the fourth quarter of last year followed by another 3% increase in the first quarter of this year. Currently holding 686,228 shares of the e-commerce company, Charles Schwab seems confident in Chewy’s potential for growth.
Recently, Chewy’s shares experienced a 27% surge in one trading session after the company announced strong quarterly earnings and introduced its first-ever share buyback program. This success raises the question of whether other investors should consider following Charles Schwab’s lead and investing in Chewy.
With the stock price at a discounted rate, Chewy presents itself as an attractive option for those seeking a quality growth stock at a favorable price. However, investors should conduct thorough research and consider their own financial goals and risk tolerance before making any investment decisions.
As Charles Schwab continues to show confidence in Chewy’s potential, it may be worth considering whether this e-commerce company could be a valuable addition to your investment portfolio.
Source: Fool.com
