Keith Gill Takes Stake in Chewy, Sends Stock Soaring

Keith Gill Takes Stake in Chewy, Sends Stock Soaring

Keith Gill, also known as “Roaring Kitty,” made headlines once again as he took a significant stake in the pet food retailer Chewy. In a recent Securities and Exchange Commission filing, it was revealed that Gill purchased over 9 million shares of Chewy, amounting to a 6.6% stake in the company. This move catapulted him to the position of the third-largest shareholder in Chewy, with his stake valued at over $245 million based on Friday's closing price.

The news of Keith Gill's investment in Chewy sent the soaring in premarket trading on Monday, with shares rallying more than 20% before the opening bell. However, this surge in stock price is not the only interesting aspect of this story. The SEC filing also included a quirky section where Gill had to confirm that he is not a cat, a reference to a memorable moment from his congressional hearings on the GameStop trading mania in 2021.

Chewy shares experienced a volatile week following Gill's post featuring a cartoon dog resembling Chewy's logo. The stock surged as much as 34% on Thursday but ultimately closed the day slightly lower. CNBC reached out to Chewy's PR team for comment on the new shareholder, indicating the level of interest and curiosity surrounding Keith Gill's involvement with the company.

The relationship between GameStop and Chewy goes beyond Keith Gill's investment activities. GameStop CEO Ryan Cohen, who was previously the founder and CEO of Chewy, played a crucial role in PetSmart's acquisition of Chewy in 2017 and its subsequent IPO in 2019. Cohen's influence extended to GameStop when he joined the company's board of directors in January 2021, alongside two other Chewy executives. This move helped fuel the initial GameStop rally and set the stage for Cohen to take over as GameStop CEO in 2023, overseeing the retailer's transition to e-commerce.

Before gaining fame as a meme stock trader, Keith Gill worked as a marketer for Massachusetts Mutual Life Insurance. He rose to prominence in 2021 when he successfully encouraged retail investors to buy GameStop shares and call options, leading to a squeeze on short- hedge funds. Gill's recent investment in Chewy suggests a continued interest in the e-commerce sector and a strategic move to diversify his portfolio beyond GameStop.

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In a recent livestream, Keith Gill expressed confidence in GameStop's ongoing reinvention and under the leadership of Ryan Cohen. Gill views GameStop as a bet on Cohen's ability to navigate the company's pivot to e-commerce and drive its turnaround. As GameStop shares faced a 6.5% drop in premarket trading following news of Gill's Chewy investment, the market continues to speculate on the intertwined fate of these two companies.

Through Keith Gill's bold moves in the stock market, including his latest investment in Chewy, investors are reminded of the dynamic and interconnected nature of the financial world. As the saga of meme stock trading continues to unfold, Gill's role as a prominent figure in the investment landscape raises intriguing questions about the future of retail and the lasting impact of individual traders on market dynamics.

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