Chegg (NYSE:CHGG) Sets New 1-Year Low Following Analyst Downgrade

Chegg, Inc. (NYSE:CHGG)’s stock price reached a new 52-week low on Tuesday after Jefferies Financial Group downgraded the stock from a hold rating to an underperform rating. Jefferies Financial Group now has a $4.00 price target on the stock, down from their previous price target of $7.00. Chegg traded as low as $5.57 and last traded at $5.64, with a volume of 4171957 shares trading hands. The stock had previously closed at $7.17.

Several other equities analysts also recently weighed in on the company. StockNews.com upgraded Chegg from a “hold” rating to a “buy” rating in a report on Tuesday, January 23rd. The Goldman Sachs Group reduced their target price on shares of Chegg from $8.00 to $7.00 and set a “sell” rating for the company in a report on Tuesday, February 6th. BMO Capital Markets dropped their price objective on Chegg from $11.00 to $10.00 and set a “market perform” rating for the company in a research note on Tuesday, February 6th. JPMorgan Chase & Co. dropped their price objective on shares of Chegg from $10.00 to $9.00 and set a “neutral” rating for the company in a report on Tuesday, February 6th. Finally, Piper Sandler Companies cut shares of Chegg to an “underweight” rating and reduced their price target for the stock from $9.00 to $8.50 in a research report on Tuesday, February 6th. Five research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $7.72.

Institutional Trading of Chegg

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CHGG. Acadian Asset Management LLC boosted its stake in Chegg by 185.5% during the 3rd quarter. Acadian Asset Management LLC now owns 294,208 shares of the technology company’s stock worth $2,621,000 after purchasing an additional 191,165 shares during the period. Trexquant Investment LP acquired a new stake in shares of Chegg in the third quarter worth approximately $3,907,000. AQR Capital Management LLC grew its holdings in Chegg by 75.4% during the 3rd quarter. AQR Capital Management LLC now owns 693,676 shares of the technology company’s stock valued at $6,188,000 after purchasing an additional 298,194 shares in the last quarter. Graham Capital Management L.P. grew its stake in Chegg by 28.2% in the third quarter. Graham Capital Management L.P. now owns 126,457 shares of the technology company’s stock worth $1,128,000 after purchasing an additional 27,813 shares in the last quarter. Finally, Hsbc Holdings PLC grew its position in shares of Chegg by 114.4% in the 3rd quarter. Hsbc Holdings PLC now owns 262,562 shares of the technology company’s stock worth $2,347,000 after acquiring an additional 140,113 shares in the last quarter. Hedge funds and other institutional investors own 95.18% of the company’s stock.

Chegg Price Performance

The firm has a market capitalization of $580.98 million, a price-to-earnings ratio of -35.63, a price-to-earnings-growth ratio of 1.38 and a beta of 1.26. The company’s fifty day moving average price is $7.74 and its 200 day moving average price is $9.08. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.80 and a current ratio of 0.80.

Chegg (NYSE:CHGG) last posted 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. The company had revenue of $187.99 million for the quarter, compared to the consensus estimate of $185.94 million. Chegg had a return on equity of 1.27% and a net margin of 2.54%. The company’s quarterly revenue was down 8.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.16 EPS. Equities research analysts expect that Chegg, Inc. will post 0.26 earnings per share for the current year.

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.