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.