Why Chewy Was a Shaggy Dog of a Stock on Friday

Many investors were unwilling to take a bite of Chewy (NYSE: CHWY) on the last trading day of the week. The next-generation pet care supplies company saw its stock price erode by more than 4% on news of a large-scale divestment by its largest shareholder. Chewy's decline on the day was far more pronounced than that of the bellwether S&P 500 index, which slid by only 0.2%.After market close on Thursday, Chewy announced that the shareholder was unloading just under 16.7 million shares of the company's class A common stock. That investor, an affiliate of funds advised by investment management firm BC Partners Advisors, is selling those shares to the public at a price of $30 apiece. As often happens in such circumstances, investors reacted to this news by trading the stock down to around that level. Chewy added that the selling stockholder has granted the sale's underwriter, white-shoe investment bank Morgan Stanley, a 30-day option to purchase an additional 2.5 million shares. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool