Chegg (NYSE:CHGG) Trading Down 2.7% After Analyst Downgrade

Chegg, Inc. (NYSE:CHGG)’s share price fell 2.7% during mid-day trading on Monday 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 $6.87 and last traded at $6.91. 687,488 shares were traded during trading, a decline of 74% from the average session volume of 2,602,141 shares. The stock had previously closed at $7.10.

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

Hedge Funds Weigh In On Chegg

Several institutional investors have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC bought a new position in Chegg during the 1st quarter worth approximately $30,000. Assenagon Asset Management S.A. acquired a new stake in Chegg during the 1st quarter worth $1,950,000. Counterpoint Mutual Funds LLC lifted its holdings in Chegg by 83.5% during the first quarter. Counterpoint Mutual Funds LLC now owns 36,441 shares of the technology company’s stock worth $276,000 after acquiring an additional 16,585 shares in the last quarter. Vanguard Group Inc. grew its stake in Chegg by 7.5% in the fourth quarter. Vanguard Group Inc. now owns 11,630,011 shares of the technology company’s stock valued at $132,117,000 after acquiring an additional 809,530 shares during the period. Finally, Burford Brothers Inc. bought a new stake in shares of Chegg in the fourth quarter worth about $937,000. 95.18% of the stock is currently owned by institutional investors and hedge funds.

Chegg Stock Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 0.80 and a quick ratio of 0.80. The company has a market cap of $524.61 million, a price-to-earnings ratio of -32.31, a price-to-earnings-growth ratio of 1.38 and a beta of 1.26. The stock has a 50-day moving average price of $7.74 and a 200 day moving average price of $9.08.

Chegg (NYSE:CHGG) last posted its earnings results on Monday, February 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.36. The business had revenue of $187.99 million during the quarter, compared to analysts’ expectations of $185.94 million. Chegg had a return on equity of 1.27% and a net margin of 2.54%. Chegg’s revenue for the quarter was down 8.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.16 EPS. As a group, analysts anticipate that Chegg, Inc. will post 0.26 EPS for the current fiscal 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.