Chegg (NYSE:CHGG) Stock Breaks Below 200-Day Moving Average – Time to Sell?

Chegg, Inc. (NYSE:CHGG)’s share price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $0.94 and traded as low as $0.7231. Chegg shares last traded at $0.7330, with a volume of 422,431 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on CHGG shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Chegg in a research note on Friday, September 18th. Zacks Research cut shares of Chegg from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Chegg has a consensus rating of “Reduce”.

Chegg Stock Down 3.5%

The business has a fifty day moving average of $0.77 and a 200 day moving average of $0.94. The firm has a market cap of $81.38 million, a P/E ratio of -1.50 and a beta of 2.16.

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

Insider Transactions at Chegg

In other Chegg news, Director Renee Budig sold 54,347 shares of Chegg stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $0.78, for a total transaction of $42,390.66. Following the completion of the transaction, the director directly owned 376,311 shares of the company’s stock, valued at $293,522.58. The trade was a 12.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Chegg

Large investors have recently modified their holdings of the stock. Renaissance Technologies LLC boosted its holdings in shares of Chegg by 0.3% during the 1st quarter. Renaissance Technologies LLC now owns 3,346,800 shares of the technology company’s stock worth $2,481,000 after buying an additional 10,820 shares during the period. BlackRock Inc. bought a new position in Chegg during the 2nd quarter worth $2,268,000. GSA Capital Partners LLP bought a new stake in shares of Chegg in the second quarter valued at about $836,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Chegg in the second quarter valued at about $809,000. Finally, Empowered Funds LLC acquired a new position in shares of Chegg in the second quarter valued at about $408,000. 95.18% of the stock is owned by institutional investors.

Chegg Company Profile

Chegg, Inc is an education technology company that provides digital learning services and academic support tools for students. Its platform offers guided explanations, expert-assisted homework help, practice materials, and study resources across subjects including mathematics, science, business and the humanities.

The company’s products have included Chegg Study, Chegg Writing and Chegg Math, as well as tools designed to help students improve their writing, solve problems and prepare for exams.