Chewy's (CHWY) Valuation in Focus Ahead of Earnings: Bearish Options and Insider Selling Rise

Chewy (CHWY) is experiencing bearish options activity, rising implied volatility, and insider selling ahead of its March 25 earnings announcement. The company's share price has recently weakened, with a 7-day return of 11.15% and a 1-year total shareholder return of 28.43%. Chewy is trading at a large discount to analyst price targets and intrinsic value estimates, with a fair value estimate of $44.95. However, the company's heavy reliance on Autoship and newer areas like Vet Care Clinics and sponsored ads pose risks to this valuation.