11:46 AM EDT, 07/01/2024 (MT Newswires) -- Shares of Chewy (CHWY) reversed early morning gains on Monday as a regulatory filing showed that Keith Gill, known as "Roaring Kitty" on X and YouTube, has a 6.6% stake in the online pet store.

Gill has ownership of about 9 million Chewy shares, according to a filing with the Securities and Exchange Commission. The stock fell 5.1% in Monday trade.

On June 27, Roaring Kitty posted a picture of a cartoon dog on X, formally known as Twitter, that sent Chewy's shares surging as much as 34% intraday before ultimately closing down.

Chewy did not immediately respond to a request for comment about Gill's position. On June 26, the company said it agreed to repurchase 17.6 million of its shares from an entity affiliated with BC Partners Advisors, its largest shareholder. The company at the time called the buyback an "accretive use of capital" that provided "an efficient mechanism to repurchase shares at a discount" and reduce the ownership of its largest shareholder.

Wedbush Securities analyst Seth Basham said that BC Partners took advantage of the June 27 price action to sell 5.3 million additional shares and that the investment manager may offload more shares.

BC Partners still holds about 275 million shares representing 66% of Chewy's outstanding shares, Wedbush said in a Monday note. "This presents a ceiling on upside with incremental retail interest in the name likely met by more selling pressure from BC," Basham said.

Wedbush reiterated an outperform rating and a $35 price target on Chewy's stock. Overall, the rating reflects Chewy's market share gains and material margin expansion "in a retail segment that could be turning the corner," he said.

In mid-June, Gill upped his stake in GameStop (GME) to 9 million shares from 5 million, according to a post on Reddit.

Price: 25.88, Change: -1.36, Percent Change: -5.00