Key Insights

• The considerable ownership by private companies in Chewy indicates that they collectively have a greater say in management and business strategy

• 59% of the company is held by a single shareholder (Argos Holdings L.P)

• 27% of Chewy is held by Institutions

A look at the shareholders of Chewy, Inc. (NYSE:CHWY) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 27% came under pressure after market cap dropped to US$12b last week,private companies took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Chewy.

Check out our latest analysis for Chewy

What Does The Institutional Ownership Tell Us About Chewy?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Chewy. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Chewy, (below). Of course, keep in mind that there are other factors to consider, too.

Chewy is not owned by hedge funds. Our data shows that Argos Holdings L.P is the largest shareholder with 59% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 4.6% of the shares outstanding, followed by an ownership of 2.5% by the third-largest shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Chewy

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.