Chewy (NYSE: CHWY) stock initially surged up to 10% on Monday after Keith Gill, also known as “Roaring Kitty,” revealed a 6.6% passive stake in the online retailer specializing in pet food and products. However, the stock later reversed these gains.
“Roaring Kitty,” also known as Keith Gill, is back in the spotlight for his significant stake in Chewy (CHWY).
According to a Securities and Exchange Commission (SEC) filing on Monday, Gill owns 9,001,000 shares of Chewy, valued at approximately $245 million based on Friday’s closing price of $27.24 per share. This represents 6.6% of the voting shares in the pet products retailer.
The filing clarified that Gill acquired the shares not to change or influence the control of Chewy. It stated,
“The shares were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect”
Last week, Keith Gill caused a stir in the trading of Chewy stock and its competitor, Petco Health and Wellness (WOOF), by sharing a cartoon dog picture on his X account. This move initially drove Chewy’s shares up by as much as 34% on Thursday before reversing course and turning negative. The stock continued to decline on Friday.
Gill gained fame as a central figure in the meme stock phenomenon of early 2021, particularly with his investments in GameStop (GME). After a three-year hiatus from social media, he reappeared in May, sparking renewed meme stock fervor, particularly impacting GameStop shares.
Chewy (NYSE: CHWY) Stock Reaction
CHWY stock dropped 6.61% on Monday, closing at $25.44, marking a 5.60% decrease for the week. The trading volume was 62,002,312 shares, significantly lower than the average daily volume of 12.39 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
