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Chewy is the latest stock analysts love but can't afford

Data: Investing.com; Chart: Axios Visuals

Chewy was the latest stock to become a victim of its own success.

The big picture: In a familiar pattern for companies that have seen share prices skyrocket after their debut in public markets, a slew of analysts released largely upbeat ratings of the company, but warned that the stock may already be in overbought territory.

What happened: Shares of Chewy fell 4% on Tuesday after at least 7 analysts issued guidance, with 5 placing the equivalent of Hold ratings on the stock and just 2 recommending investors buy it, FactSet data shows.

  • Chewy went public less than a month ago, and is now 4.5% below the $34.99 closing price on its first day of trading.

Yes, but: The stock is still 50% higher than its $22 IPO price.

Go deeper: Investors are missing out on the stock market rally