Chegg Sees Unusually High Options Volume (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) was the recipient of unusually large options trading activity on Tuesday. Traders bought 7,287 call options on the stock. This is an increase of 300% compared to the typical daily volume of 1,820 call options.

Chegg News Summary

Here are the key news stories impacting Chegg this week:

• Positive Sentiment: Q4 beat on headline metrics — Chegg reported adjusted EPS of ($0.01) versus consensus ($0.19) and revenue of $72.66M versus ~$71M, showing a narrower loss and a revenue beat that supports the case for recovery. Chegg (NYSE:CHGG) Exceeds Q4 CY2025 Expectations
• Positive Sentiment: Management emphasizing a strategic “skilling” pivot as part of a turnaround plan — the earnings call/transcripts highlight investments in non‑academic products aimed at stabilizing revenue longer term. This provides a potential growth pathway if execution succeeds. Chegg (CHGG) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Large options and call activity could increase short‑term volatility — unusual volume in call options and reported options surges are drawing attention from traders but don’t necessarily indicate directional conviction by fundamentals. Chegg (NYSE:CHGG) Options Surge Draws Russell 1000 Attention
• Neutral Sentiment: Analyst stance remains cautious — firms like Needham have reaffirmed a hold rating, reflecting uncertainty about the timing and magnitude of a sustained turnaround. Benzinga
• Negative Sentiment: Underlying academic segment weakness and sharp year‑over‑year declines worried investors — several reports note that despite the beat, core user/subscriber metrics are down and management’s pivot hasn’t yet offset declines, prompting an after‑hours selloff. Chegg (CHGG) stock trades down, here is why
• Negative Sentiment: Small market cap and high beta amplify moves — with low share price, continued negative margins and investor uncertainty, CHGG is prone to outsized swings on mixed news and trader activity. Chegg: Q4 Earnings Snapshot

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Needham & Company LLC restated a “hold” rating on shares of Chegg in a research note on Tuesday. Zacks Research lowered shares of Chegg from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Chegg in a report on Monday, December 29th. Two investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Strong Sell” and an average price target of $1.00.

Institutional Trading of Chegg

Institutional investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership increased its position in Chegg by 158.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 3,756,917 shares of the technology company’s stock worth $4,546,000 after buying an additional 2,305,872 shares during the last quarter. AQR Capital Management LLC boosted its stake in shares of Chegg by 95.9% during the 1st quarter. AQR Capital Management LLC now owns 3,011,879 shares of the technology company’s stock worth $1,925,000 after acquiring an additional 1,474,640 shares during the period. Jacobs Levy Equity Management Inc. increased its holdings in shares of Chegg by 227.2% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 930,177 shares of the technology company’s stock worth $1,405,000 after acquiring an additional 645,874 shares during the last quarter. Allianz Asset Management GmbH acquired a new position in shares of Chegg during the 3rd quarter worth approximately $484,000. Finally, UBS Group AG raised its stake in Chegg by 64.9% in the 3rd quarter. UBS Group AG now owns 560,943 shares of the technology company’s stock valued at $847,000 after acquiring an additional 220,752 shares during the period. Institutional investors own 95.18% of the company’s stock.

Chegg Stock Down 9.2%

Shares of CHGG stock opened at $0.61 on Thursday. Chegg has a 12-month low of $0.44 and a 12-month high of $1.90. The firm has a fifty day moving average of $0.86 and a 200-day moving average of $1.13. The company has a market capitalization of $66.76 million, a price-to-earnings ratio of -0.64 and a beta of 1.98.

Chegg (NYSE:CHGG) last released its quarterly earnings results on Monday, February 9th. The technology company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.19) by $0.18. The firm had revenue of $72.66 million for the quarter, compared to the consensus estimate of $71.00 million. Chegg had a negative return on equity of 17.08% and a negative net margin of 27.44%. On average, equities analysts expect that Chegg will post 0.15 EPS for the current year.

Chegg Company Profile

Chegg, Inc (NYSE: CHGG) is a leading education technology company headquartered in Santa Clara, California. Originally founded in 2005, Chegg has evolved from a textbook rental service into a comprehensive digital learning platform. Its suite of subscription-based offerings addresses a wide range of academic needs, catering primarily to high school and college students seeking homework help, study resources, and career guidance.

The company’s core services include Chegg Study, which provides step-by-step solutions and expert Q&A support; Chegg Writing, offering plagiarism checks and guided writing assistance; and Chegg Math Solver, a tool for solving mathematical problems with detailed explanations.