Chegg (NYSE:CHGG) Cut to Underperform at Jefferies Financial Group

Chegg (NYSE:CHGG) was downgraded by stock analysts at Jefferies Financial Group from a “hold” rating to an “underperform” rating in a report issued on Tuesday, Briefing.com reports. They presently have a $4.00 target price on the technology company’s stock, down from their previous target price of $7.00. Jefferies Financial Group’s price objective suggests a potential downside of 44.21% from the company’s current price.

Several other research analysts have also recently commented on CHGG. Piper Sandler Companies cut shares of Chegg to an “underweight” rating and decreased their target price for the stock from $9.00 to $8.50 in a research report on Tuesday, February 6th. Morgan Stanley lowered their target price on Chegg from $8.50 to $7.00 and set an “underweight” rating on the stock in a research report on Friday, April 19th. StockNews.com raised shares of Chegg from a “hold” rating to a “buy” rating in a research note on Tuesday, January 23rd. JPMorgan Chase & Co. decreased their price target on Chegg from $10.00 to $9.00 and set a “neutral” rating for the company in a research note on Tuesday, February 6th. Finally, BMO Capital Markets cut their price objective on Chegg from $11.00 to $10.00 and set a “market perform” rating for the company in a report on Tuesday, February 6th. Five research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $9.22.

Chegg Trading Up 1.0 %

CHGG opened at $7.17 on Tuesday. 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 company’s 50-day moving average price is $7.77 and its 200 day moving average price is $9.09. Chegg has a fifty-two week low of $6.63 and a fifty-two week high of $17.92.

Chegg (NYSE:CHGG) last issued its quarterly earnings data on Monday, February 5th. The technology company reported $0.36 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 firm had revenue of $187.99 million during the quarter, compared to the consensus estimate of $185.94 million. During the same period in the prior year, the business earned $0.16 EPS. The firm’s revenue was down 8.4% on a year-over-year basis. Equities research analysts predict that Chegg will post 0.26 EPS for the current fiscal year.

Hedge Funds Weigh In On Chegg

Several institutional investors and hedge funds have recently added to or reduced their stakes in CHGG. Vanguard Group Inc. grew its stake in Chegg by 7.5% during the 4th 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 in the last quarter. Sylebra Capital LLC acquired a new stake in shares of Chegg during the 3rd quarter valued at $61,286,000. Jacobs Levy Equity Management Inc. grew its holdings in shares of Chegg by 14.5% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 2,663,462 shares of the technology company’s stock valued at $23,758,000 after acquiring an additional 337,680 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Chegg by 39.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,648,182 shares of the technology company’s stock worth $30,084,000 after acquiring an additional 750,677 shares during the last quarter. Finally, Federated Hermes Inc. raised its holdings in shares of Chegg by 229.8% during the fourth quarter. Federated Hermes Inc. now owns 1,254,339 shares of the technology company’s stock worth $14,249,000 after acquiring an additional 873,984 shares in the last quarter. 95.18% of the stock is currently owned by hedge funds and other institutional investors.

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.