Chegg (NYSE:CHGG) Stock Price Down 2.7% After Analyst Downgrade

Chegg, Inc. (NYSE:CHGG)’s stock price was down 2.7% on Monday after Jefferies Financial Group lowered their price target on the stock from $10.00 to $7.00. Jefferies Financial Group currently has a hold rating on the stock. Chegg traded as low as $6.87 and last traded at $6.91. Approximately 687,488 shares traded hands during trading, a decline of 74% from the average daily volume of 2,602,141 shares. The stock had previously closed at $7.10.

Other research analysts have also issued reports about the company. JPMorgan Chase & Co. dropped their price target on Chegg from $10.00 to $9.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 6th. The Goldman Sachs Group decreased their price target on Chegg from $8.00 to $7.00 and set a “sell” rating for the company in a research note on Tuesday, February 6th. Piper Sandler Companies downgraded Chegg to an “underweight” rating and decreased their price target for the stock from $9.00 to $8.50 in a research note on Tuesday, February 6th. BMO Capital Markets decreased their price target on Chegg from $11.00 to $10.00 and set a “market perform” rating for the company in a research note on Tuesday, February 6th. Finally, StockNews.com upgraded Chegg from a “hold” rating to a “buy” rating in a research note on Tuesday, January 23rd. Four investment analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $9.56.

Institutional Trading of Chegg

Hedge funds have recently modified their holdings of the company. Allspring Global Investments Holdings LLC bought a new stake in shares of Chegg in the 1st quarter worth approximately $30,000. Headlands Technologies LLC bought a new stake in shares of Chegg in the 4th quarter worth approximately $48,000. Quest Partners LLC bought a new stake in shares of Chegg in the 4th quarter worth approximately $114,000. Moors & Cabot Inc. acquired a new position in shares of Chegg in the 3rd quarter worth approximately $98,000. Finally, Shell Asset Management Co. raised its holdings in shares of Chegg by 48.8% in the 3rd quarter. Shell Asset Management Co. now owns 11,423 shares of the technology company’s stock worth $102,000 after buying an additional 3,748 shares in the last quarter. Institutional investors own 95.18% of the company’s stock.

Chegg Stock Performance

The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.26. The stock has a fifty day moving average price of $7.77 and a 200-day moving average price of $9.09. The firm has a market capitalization of $718.10 million, a price-to-earnings ratio of -43.06, a PEG ratio of 1.38 and a beta of 1.26.

Chegg (NYSE:CHGG) last issued its earnings results on Monday, February 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.36. Chegg had a return on equity of 1.27% and a net margin of 2.54%. The business had revenue of $187.99 million during the quarter, compared to analysts’ expectations of $185.94 million. During the same period in the prior year, the firm posted $0.16 EPS. Chegg’s quarterly revenue was down 8.4% compared to the same quarter last year. As a group, analysts anticipate that Chegg, Inc. will post 0.26 earnings per share for the current fiscal year.

Chegg Company Profile

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.