- Keith Gill, ‘Roaring Kitty’, reveals unexpected investment in Chewy, owning 6.6% stake.
- Gill’s Chewy stake disclosed in SEC filing, causing initial surge then drop in stock price.
- Keith Gill buys 9 million Chewy shares, raising questions about the company’s future.
Keith Gill, widely recognized as ‘Roaring Kitty’ is once again trending, but not about GameStop. This time, it’s about an unexpected investment in online pet retailer Chewy (CHWY).
JUST IN: Roaring Kitty (Keith Gill) files SEC 13G disclosing owning 6.6% of Chewy $CHWY. pic.twitter.com/gEQnBCvK5b
— Watcher.Guru (@WatcherGuru) July 1, 2024
In a recent SEC 13G filing, Gill disclosed that he now holds a significant stake in CHWY. The filing revealed that he purchased just over 9 million shares, amounting to a 6.6% ownership stake in the company.
This development has drawn the attention of investors and traders, given Gill’s reputation as a meme stock icon. Chewy, a convenient online platform for pet products, saw its stock price react swiftly. Initially, shares surged by 11% following Gill’s disclosure.
However, the excitement was short-lived. The stock later turned negative, trading down 6% midday on Monday. The turbulence reflects the market’s uncertainty about what this investment means for the company’s future.
Gill’s Rise to Fame
Gill’s journey to fame began in 2020 when he became the de facto leader of an online-populist movement. His goal was to turn around legacy brick-and-mortar companies like GameStop, AMC, and Bed Bath & Beyond.
Though the movement didn’t achieve its goals, it caused major losses for investors who bet against these companies. Gill’s trading activities, however, have faced scrutiny.
Notably, Gill’s recent trades in GameStop shares led to a class-action lawsuit filed in Brooklyn. The plaintiff alleges that Gill engaged in a ‘pump and dump’ scheme, artificially inflating the stock price through his influential online platform.
Gill’s subsequent profitable sale of shares raised suspicions. Despite the controversy, GameStop’s stock price remains higher than before Gill’s involvement.
Interestingly, Chewy’s co-founder, Ryan Cohen, also played a role in the meme-stock wave. Cohen, who is no longer affiliated with Chewy management, revealed his large position in GameStop in 2020. months after Gill’s initial posts.
