Chegg (NYSE:CHGG) Stock Sees Unusually High Call Option Buying

Chegg, Inc. (NYSE:CHGG) saw unusually large options trading on Monday. Investors bought 5,655 call options on the company. This is an increase of 129% compared to the average volume of 2,472 call options.

Chegg Price Performance

Shares of CHGG stock traded up $0.04 during mid-day trading on Tuesday, hitting $0.71. The company had a trading volume of 261,144 shares, compared to its average volume of 1,372,111. Chegg has a 52-week low of $0.45 and a 52-week high of $1.56. The stock’s 50 day moving average price is $0.74 and its 200-day moving average price is $0.86. The company has a market capitalization of $78.39 million, a P/E ratio of -1.44 and a beta of 2.16.

Chegg (NYSE:CHGG) last posted its earnings results on Tuesday, November 3rd. The technology company reported ($0.05) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.04. The company had revenue of $46.47 million during the quarter, compared to analysts’ expectations of $43.50 million. Chegg had a negative net margin of 19.96% and a negative return on equity of 13.38%.

Insider Buying and Selling

In related news, Director Renee Budig sold 54,347 shares of Chegg stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $0.78, for a total transaction of $42,390.66. Following the transaction, the director directly owned 376,311 shares in the company, valued at approximately $293,522.58. The trade was a 12.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.00% of the company’s stock.

Institutional Investors Weigh In On Chegg

Large investors have recently made changes to their positions in the company. Wealthfront Advisers LLC bought a new position in Chegg during the second quarter valued at approximately $63,000. Hsbc Holdings PLC bought a new stake in Chegg in the 2nd quarter worth approximately $68,000. Jefferies Financial Group Inc. purchased a new stake in shares of Chegg during the 2nd quarter worth approximately $78,000. Bank of America Corp DE raised its holdings in shares of Chegg by 12.1% during the 1st quarter. Bank of America Corp DE now owns 119,544 shares of the technology company’s stock worth $89,000 after acquiring an additional 12,923 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its position in shares of Chegg by 32.5% during the 1st quarter. Bank of New York Mellon Corp now owns 230,293 shares of the technology company’s stock valued at $171,000 after acquiring an additional 56,531 shares during the last quarter. 95.18% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Zacks Research cut Chegg from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Chegg in a report on Friday, September 18th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce”.

About Chegg

Chegg, Inc is an education technology company that provides digital learning tools and academic support services to students. Its platform offers study assistance, expert answers, practice materials, writing support, and other resources intended to help students understand course content and complete academic work.

The company’s products have included Chegg Study, Chegg Writing, and Mathway, a mobile mathematics problem-solving service. Chegg has also offered language-learning services through Busuu, which it acquired in 2022.