Chegg, Inc. (NYSE:CHGG) Receives Consensus Rating of “Strong Sell” from Brokerages

Chegg, Inc. (NYSE:CHGG) has earned an average recommendation of “Strong Sell” from the nine ratings firms that are covering the company, Marketbeat reports. Five research analysts have rated the stock with a sell recommendation and four have given a hold recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $7.31.

Several equities analysts have recently issued reports on the stock. BMO Capital Markets cut their price objective on shares of Chegg from $11.00 to $10.00 and set a “market perform” rating on the stock in a report on Tuesday, February 6th. Morgan Stanley dropped 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 upgraded Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, January 23rd. Piper Sandler reaffirmed an “underweight” rating and set a $6.00 price objective (down previously from $8.50) on shares of Chegg in a research note on Tuesday, April 30th. Finally, The Goldman Sachs Group dropped their price objective on shares of Chegg from $8.00 to $7.00 and set a “sell” rating on the stock in a research note on Tuesday, February 6th.

Chegg Stock Performance

CHGG stock opened at $5.08 on Wednesday. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.92 and a quick ratio of 0.92. The business has a 50-day moving average price of $7.31 and a 200 day moving average price of $8.95. The company has a market capitalization of $519.28 million, a P/E ratio of -26.74, a PEG ratio of 0.98 and a beta of 1.35. Chegg has a 1-year low of $4.96 and a 1-year high of $13.11.

Chegg (NYSE:CHGG) last released 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. The firm had revenue of $187.99 million during the quarter, compared to the consensus estimate of $185.94 million. Chegg had a return on equity of 0.87% and a net margin of 2.07%. The firm’s quarterly revenue was down 8.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.16 earnings per share. As a group, equities research analysts forecast that Chegg will post 0.27 EPS for the current fiscal year.

Institutional Investors Weigh In On Chegg

Institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC acquired a new stake in Chegg in the 1st quarter valued at $30,000. Headlands Technologies LLC acquired a new stake in Chegg in the 4th quarter valued at $48,000. Quest Partners LLC acquired a new stake in Chegg in the 4th quarter valued at $114,000. Moors & Cabot Inc. purchased a new position in Chegg in the 3rd quarter valued at $98,000. Finally, Shell Asset Management Co. lifted its holdings in Chegg by 48.8% in the 3rd quarter. Shell Asset Management Co. now owns 11,423 shares of the technology company’s stock valued at $102,000 after purchasing an additional 3,748 shares in the last quarter. Institutional investors and hedge funds own 95.18% of the company’s stock.

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.