Chegg, Inc. (NYSE:CHGG) Receives Average Rating of “Reduce” from Brokerages

Chegg, Inc. (NYSE:CHGG) has earned an average rating of “Reduce” from the nine brokerages that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $6.84.

A number of brokerages recently commented on CHGG. Jefferies Financial Group lowered Chegg from a “hold” rating to an “underperform” rating and cut their target price for the company from $7.00 to $4.00 in a research note on Tuesday, April 30th. Needham & Company LLC reiterated a “hold” rating on shares of Chegg in a research note on Tuesday, June 18th. Morgan Stanley upgraded Chegg from an “underweight” rating to an “equal weight” rating and dropped their price objective for the stock from $6.50 to $3.25 in a research note on Tuesday, July 16th. Craig Hallum reiterated a “hold” rating and set a $7.00 price objective (down from $13.00) on shares of Chegg in a research note on Tuesday, April 30th. Finally, Piper Sandler reiterated an “underweight” rating and set a $6.00 price objective (down from $8.50) on shares of Chegg in a research note on Tuesday, April 30th.

Hedge Funds Weigh In On Chegg

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in Chegg by 7.5% in the fourth quarter. Vanguard Group Inc. now owns 11,630,011 shares of the technology company’s stock valued at $132,117,000 after acquiring an additional 809,530 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its holdings in Chegg by 4.0% in the first quarter. Jacobs Levy Equity Management Inc. now owns 2,747,406 shares of the technology company’s stock valued at $20,798,000 after acquiring an additional 105,511 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in Chegg by 39.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,648,182 shares of the technology company’s stock valued at $30,084,000 after acquiring an additional 750,677 shares during the last quarter. Federated Hermes Inc. boosted its holdings in Chegg by 229.8% in the fourth quarter. Federated Hermes Inc. now owns 1,254,339 shares of the technology company’s stock valued at $14,249,000 after acquiring an additional 873,984 shares during the last quarter. Finally, Boston Partners bought a new position in Chegg in the fourth quarter valued at about $12,091,000. Institutional investors own 95.18% of the company’s stock.

Chegg Stock Performance

Shares of NYSE CHGG opened at $3.51 on Monday. The business has a fifty day simple moving average of $3.29 and a 200 day simple moving average of $6.28. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.25. The firm has a market capitalization of $358.79 million, a price-to-earnings ratio of -18.47, a PEG ratio of 0.62 and a beta of 1.35. Chegg has a one year low of $2.53 and a one year high of $13.11.

Chegg (NYSE:CHGG) last issued its earnings results on Monday, April 29th. The technology company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.03). The firm had revenue of $174.35 million during the quarter, compared to analyst estimates of $174.05 million. Chegg had a net margin of 2.07% and a return on equity of 0.87%. Sell-side analysts expect that Chegg will post 0.28 EPS for the current year.

About Chegg

Chegg, Inc operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside.