🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Roaring Kitty dumps Chewy stake, which could 'de-meme' the stock

Published 10/30/2024, 08:44 AM
© Reuters
CHWY
-

Investing.com -- Keith Gill, the influential retail investor known as Roaring Kitty, has exited his entire position in pet products retailer Chewy (NYSE:CHWY), according to a filing with the U.S. Securities and Exchange Commission on Tuesday.

Chewy shares fell around 1.7% in premarket trading on Wednesday.

Gill, widely recognized for his pivotal role in the GameStop (NYSE:GME) saga of 2021, first disclosed a 6.6% stake in Chewy in July.

The announcement at the time spurred speculation about increased volatility in Chewy’s stock due to Gill’s large following of retail investors.

Mizuho analysts said in a brief note that the exit of Gill could trigger short-term market noise and concerns about retail selling pressure but they view the development positively.

"We view this as a potential 'de-meming' of shares," Mizuho said.

Chewy, an e-commerce platform focused on pet food and supplies, became Gill’s first significant stake beyond his highly publicized investment in GameStop.

Known for his posts on YouTube and Reddit, Gill teased the Chewy investment by posting a photo of a dog on his X (formerly Twitter) account just days before his initial disclosure.

While his involvement sparked excitement among some investors, it reportedly raised concerns within Chewy’s leadership about the potential impact of increased stock volatility on institutional shareholders.

Mizuho analysts believe that Gill selling the stake in Chewy could restore stability to the stock by reducing speculative trading fueled by his retail followers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.