Roaring Kitty Buys 6.6% Stake in Chewy, Boosts CHWY Stock 11%

• Renowned trader Keith Gill, commonly recognized as Roaring Kitty, has made a significant investment in the pet retail company Chewy.
• This substantial acquisition was first hinted at through a social media post by Gill.
• Notably, Gill’s recent purchase has intrigued market analysts and investors alike.

Keith Gill, famously known as Roaring Kitty, now holds a significant stake in Chewy, inciting market excitement and speculation.

Keith Gill Acquires Major Stake in Chewy

Keith Gill, who achieved fame under the pseudonym Roaring Kitty, has acquired a significant number of shares in Chewy Inc., marking a notable shift from his previous investments. According to a recent SEC filing, Gill now possesses 6.6% of the pet retail giant. This development follows a cryptic hint on social media, reigniting buzz around his investment strategies.

Market Reaction to Gill’s Investment

On June 24, Gill acquired 9,001,000 shares of CHWY. Curiously, this matches the amount he holds in GameStop, as detailed in his latest Reddit update. Such filings, classified under Form 13G, need to be submitted within 10 days post any transaction exceeding a 5% stake in a security. Although similar filings have occasionally been spoofed to manipulate asset prices, the market regards Gill’s move as authentic. Consequently, CHWY shares surged by 11% in pre-market trading, surpassing the previous Friday’s closing price of $27.24.

Social Media Influence and Previous Controversies

Gill’s tweet featuring a cartoon dog last Thursday caused several pet-related stocks, including Chewy, to spike by 33% in mere minutes. His involvement with Chewy is particularly intriguing due to GameStop CEO Ryan Cohen’s history with the company as its founder. Interestingly, Gill added a quirky checkbox to the SEC filing, humorously questioning if he is a cat. The document concluded that he is “not a cat,” which deviates from conventional SEC document standards but aligns with Gill’s unique style.

Impact and Future Speculations

Gill’s recent purchase occurred amid allegations of securities fraud, triggered by his influential social media presence affecting GameStop’s stock prices. Known for his pivotal role in the 2021 GameStop short squeeze, which propelled the retailer’s stock upward by billions, Gill became a household name. This event inspired both a feature film and a documentary.

Looking Ahead

After a period of online dormancy, Gill’s return marked by mysterious movie memes in early May instigated another GameStop stock rally. However, a lackluster Q1 report from the company dampened the excitement surrounding his much-anticipated livestream. Despite his sporadic social media activity since then, this SEC filing signifies a strategic pivot, spotlighting a different investment focus outside of GameStop.

Conclusion

Keith Gill’s substantial investment in Chewy signals a noteworthy shift and has already influenced stock market movements significantly. This move reaffirms his enduring impact on retail trading and investment strategies. Investors and market watchers alike will be closely monitoring his next steps and the potential ripple effects in the financial markets.