Chegg Target of Unusually Large Options Trading (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) was the recipient of unusually large options trading activity on Monday. Traders bought 6,864 call options on the company. This is an increase of approximately 140% compared to the typical volume of 2,865 call options.

Chegg Stock Down 1.2%

NYSE CHGG traded down $0.01 on Monday, hitting $0.81. The company’s stock had a trading volume of 107,060 shares, compared to its average volume of 1,516,255. Chegg has a 1-year low of $0.45 and a 1-year high of $1.90. The company’s 50-day moving average is $0.94 and its 200 day moving average is $0.91. The firm has a market cap of $89.71 million, a PE ratio of -1.65 and a beta of 2.17.

Chegg (NYSE:CHGG) last issued its quarterly earnings results on Thursday, August 6th. The technology company reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.03. Chegg had a negative net margin of 19.96% and a negative return on equity of 13.38%. The company had revenue of $51.85 million for the quarter, compared to analyst estimates of $49.50 million. On average, equities analysts expect that Chegg will post -0.22 EPS for the current year.

Insider Buying and Selling at Chegg

In other news, Director Renee Varni Budig sold 54,347 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $0.78, for a total value of $42,390.66. Following the sale, the director directly owned 376,311 shares in the company, valued at approximately $293,522.58. This trade represents a 12.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.00% of the company’s stock.

Hedge Funds Weigh In On Chegg

A number of hedge funds and other institutional investors have recently made changes to their positions in CHGG. Empowered Funds LLC grew its position in shares of Chegg by 2.6% in the first quarter. Empowered Funds LLC now owns 377,353 shares of the technology company’s stock valued at $280,000 after purchasing an additional 9,549 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in Chegg by 0.3% in the 1st quarter. Renaissance Technologies LLC now owns 3,346,800 shares of the technology company’s stock valued at $2,481,000 after purchasing an additional 10,820 shares during the period. Jefferies Financial Group Inc. increased its holdings in shares of Chegg by 14.2% in the third quarter. Jefferies Financial Group Inc. now owns 88,269 shares of the technology company’s stock worth $133,000 after purchasing an additional 11,000 shares during the period. Bank of America Corp DE grew its position in Chegg by 12.1% during the first quarter. Bank of America Corp DE now owns 119,544 shares of the technology company’s stock worth $89,000 after buying an additional 12,923 shares in the last quarter. Finally, Cerity Partners LLC raised its holdings in shares of Chegg by 38.4% in the 2nd quarter. Cerity Partners LLC now owns 62,579 shares of the technology company’s stock valued at $76,000 after acquiring an additional 17,371 shares in the last quarter. 95.18% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

CHGG has been the subject of several research reports. Zacks Research downgraded shares of Chegg from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Weiss Ratings upgraded shares of Chegg from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Chegg currently has an average rating of “Reduce”.

About Chegg

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.