Chegg (NYSE:CHGG) Shares Down 2.7% Following Analyst Downgrade

Chegg, Inc. (NYSE:CHGG) 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.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Commonwealth Equity Services LLC increased its stake in Chegg by 2.6% in the third quarter. Commonwealth Equity Services LLC now owns 70,415 shares of the technology company’s stock valued at $628,000 after acquiring an additional 1,768 shares during the period. SG Americas Securities LLC lifted its position in shares of Chegg by 4.5% during the fourth quarter. SG Americas Securities LLC now owns 51,205 shares of the technology company’s stock worth $582,000 after purchasing an additional 2,216 shares in the last quarter. Daiwa Securities Group Inc. lifted its position in shares of Chegg by 6.4% during the fourth quarter. Daiwa Securities Group Inc. now owns 41,595 shares of the technology company’s stock worth $473,000 after purchasing an additional 2,500 shares in the last quarter. GHE LLC lifted its position in shares of Chegg by 5.3% during the third quarter. GHE LLC now owns 50,517 shares of the technology company’s stock worth $451,000 after purchasing an additional 2,548 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. lifted its position in shares of Chegg by 5.3% during the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 51,276 shares of the technology company’s stock worth $457,000 after purchasing an additional 2,600 shares in the last quarter. Institutional investors own 95.18% of the company’s stock.

Chegg Price Performance

The company’s fifty day moving average is $7.77 and its two-hundred day moving average is $9.09. The firm has a market capitalization of $728.26 million, a price-to-earnings ratio of -44.81, a price-to-earnings-growth ratio of 1.38 and a beta of 1.26. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.26.

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