Chewy (NYSE:CHWY) stock is in the spotlight after Roaring Kitty, whose real name is Keith Gill, revealed a 6.6% stake in the pet supplies e-commerce company through a 13G filing. Equivalent to 9.001 million shares, Gill’s stake is accurate as of June 24. He disclosed the position this morning.
Gill had previously hinted at his investment in CHWY stock, posting a picture of a cartoon dog on June 27:
Meanwhile, others are wondering whether Gill sold out of his GameStop (NYSE:GME) stake in order to fund his Chewy position. Gill’s last GME stock update, posted on June 13, revealed a position of 9.001 million shares.
GameStop CEO Ryan Cohen co-founded Chewy and was also its CEO before stepping down in 2018.
CHWY Stock: Roaring Kitty Discloses 6.6% Stake
In the 13G filing, Gill added a section that stated “Check the appropriate box to designate whether you are a cat.” Gill checked the “I am not a cat” box.
In addition, Gill has shown a preference for the 9.001 million number. That was the same number of shares of GME that Cohen owned when he joined the company’s board during the first quarter of 2021. That was also the same period of time when GME stock squeezed to unimaginable highs.
With his new purchase, Gill is now the fourth-largest shareholder of CHWY stock based on 13F filings. Argos Holdings is technically the largest shareholder because it owns 275.98 million Class B shares convertible to Class A shares on a 1-to-1 basis. Behind Argos is Baillie Gifford with 19.81 million shares and Vanguard with 10.48 million shares.
Last week, Argos disclosed that it had converted 22.87 million Class B shares into 22.87 million Class A shares. These shares were subsequently sold for a total of $660 million.
Chewy itself bought 17.55 million of those shares for roughly $500 million and then proceeded to cancel and retire the shares. The company’s outstanding Class A and B shares is now approximately 418 million compared to 436 million before the transaction.
With Gill now a major shareholder, CHWY stock investors should expect additional volatility in the coming days and weeks.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
