Chewy Inc (NYSE:CHWY) shares are trading lower Thursday after the company announced a public offering by a selling stockholder and a concurrent share repurchase.

What To Know: Chewy announced an underwritten public offering of 15,852,886 shares of its common stock, being sold by an entity affiliated with Chewy's largest shareholder BC Partners Advisors. The selling stockholder plans to grant the underwriters a 30-day option to purchase up to an additional 2,377,932 shares of Chewy common stock.

Chewy will not sell any shares in the offering, and will not receive any proceeds.

In addition, Chewy has agreed to repurchase and retire $50 million of its common stock at the same price paid by the underwriters in the offering. The concurrent repurchase is being executed separately from the company's existing $500 million share repurchase program that was authorized in May.

The offering comes after Chewy reported mixed quarterly results last week, beating on earnings but missing on revenue. The company guided for fourth-quarter revenue of $3.18 billion to $3.2 billion versus estimates of $3.17 billion.

Following the company's quarterly results, Goldman Sachs lifted its price target to $40, RBC Capital raised its target to $42 and JPMorgan maintained an Overweight rating and moved its price target up to $38.

Chewy shares are up approximately 37% year-to-date. The rally in the online pet retailer's stock accelerated over the summer after meme stock trader Keith Gill, also known as "Roaring Kitty," announced a stake in the company. Gill has since announced that he sold his entire stake in Chewy.

CHWY Price Action: Chewy shares were down 2.8% at $31.63 at the time of publication Thursday, according to Benzinga Pro.

Photo: courtesy of Chewy.