Traders Purchase High Volume of Put Options on Chegg (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) was the target of unusually large options trading on Thursday. Stock investors acquired 4,860 put options on the company. This represents an increase of approximately 169% compared to the typical daily volume of 1,806 put options.

Chegg Stock Performance

CHGG stock opened at $7.10 on Friday. The firm has a market cap of $730.42 million, a PE ratio of -44.34, a P/E/G ratio of 1.34 and a beta of 1.26. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.26. The business has a 50 day moving average of $7.98 and a 200-day moving average of $9.14. Chegg has a 12-month low of $6.63 and a 12-month high of $18.77.

Chegg (NYSE:CHGG) last announced its quarterly earnings data on Monday, February 5th. The technology company reported $0.36 earnings per share for the quarter, meeting the consensus estimate of $0.36. Chegg had a return on equity of 1.27% and a net margin of 2.54%. The business had revenue of $187.99 million during the quarter, compared to analyst estimates of $185.94 million. During the same period in the prior year, the company earned $0.16 earnings per share. Chegg’s revenue was down 8.4% compared to the same quarter last year. As a group, sell-side analysts expect that Chegg will post 0.26 earnings per share for the current year.

Wall Street Analyst Weigh In

CHGG has been the topic of a number of analyst reports. BMO Capital Markets reduced their price target on Chegg from $11.00 to $10.00 and set a “market perform” rating on the stock in a research report on Tuesday, February 6th. StockNews.com raised Chegg from a “hold” rating to a “buy” rating in a research note on Tuesday, January 23rd. The Goldman Sachs Group dropped their price target on Chegg from $8.00 to $7.00 and set a “sell” rating on the stock in a research note on Tuesday, February 6th. Piper Sandler downgraded Chegg from a “neutral” rating to an “underweight” rating and dropped their price target for the stock from $9.00 to $8.50 in a research note on Tuesday, February 6th. Finally, Piper Sandler Companies downgraded Chegg to an “underweight” rating and dropped their price target for the stock from $9.00 to $8.50 in a research note on Tuesday, February 6th. Four research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $10.00.

Hedge Funds Weigh In On Chegg

Several institutional investors and hedge funds have recently bought and sold shares of CHGG. Captrust Financial Advisors grew its position in shares of Chegg by 79.6% in the first quarter. Captrust Financial Advisors now owns 2,012 shares of the technology company’s stock valued at $73,000 after purchasing an additional 892 shares in the last quarter. Virtus Fund Advisers LLC purchased a new position in Chegg during the 4th quarter valued at about $29,000. Point72 Asset Management L.P. bought a new stake in shares of Chegg during the second quarter valued at about $25,000. AM Squared Ltd purchased a new stake in shares of Chegg in the first quarter worth about $47,000. Finally, Allspring Global Investments Holdings LLC purchased a new stake in shares of Chegg in the first quarter worth about $30,000. 95.18% of the stock is owned by institutional investors.

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.