Chegg (NYSE:CHGG) Downgraded to “Underperform” at Jefferies Financial Group

Jefferies Financial Group downgraded shares of Chegg (NYSE:CHGG) from a hold rating to an underperform rating in a research report report published on Tuesday morning, MarketBeat reports. Jefferies Financial Group currently has $4.00 price objective on the technology company’s stock, down from their prior price objective of $7.00.

A number of other equities research analysts have also recently commented on CHGG. Piper Sandler cut Chegg from a neutral rating to an underweight rating and decreased their price target for the company from $9.00 to $8.50 in a report on Tuesday, February 6th. Morgan Stanley decreased their price target on Chegg from $8.50 to $7.00 and set an underweight rating on the stock in a report on Friday, April 19th. The Goldman Sachs Group decreased their price target 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. decreased their price target on Chegg from $10.00 to $9.00 and set a neutral rating on the stock in a report on Tuesday, February 6th. Finally, Piper Sandler Companies cut Chegg to an underweight rating and decreased their price target for the company from $9.00 to $8.50 in a report on Tuesday, February 6th. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of Hold and an average price target of $7.72.

Chegg Price Performance

Shares of Chegg stock opened at $5.17 on Tuesday. Chegg has a one year low of $5.11 and a one year high of $17.92. The stock’s fifty day moving average is $7.66 and its 200 day moving average is $9.06. The stock has a market cap of $524.61 million, a P/E ratio of -32.28, a P/E/G ratio of 1.38 and a beta of 1.26. 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 announced its earnings results on Monday, February 5th. The technology company reported $0.36 EPS for the quarter, hitting analysts’ consensus estimates of $0.36. Chegg had a return on equity of 1.27% and a net margin of 2.54%. The company had revenue of $187.99 million for the quarter, compared to analysts’ expectations of $185.94 million. During the same period last year, the firm earned $0.16 EPS. Chegg’s revenue for the quarter was down 8.4% compared to the same quarter last year. Sell-side analysts anticipate that Chegg will post 0.26 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Commonwealth Equity Services LLC grew its position in Chegg by 2.6% in the third quarter. Commonwealth Equity Services LLC now owns 70,415 shares of the technology company’s stock worth $628,000 after acquiring an additional 1,768 shares in the last quarter. SG Americas Securities LLC lifted its stake in Chegg by 4.5% in the fourth quarter. SG Americas Securities LLC now owns 51,205 shares of the technology company’s stock worth $582,000 after purchasing an additional 2,216 shares during the last quarter. Daiwa Securities Group Inc. lifted its stake in Chegg by 6.4% in the fourth quarter. Daiwa Securities Group Inc. now owns 41,595 shares of the technology company’s stock worth $473,000 after purchasing an additional 2,500 shares during the last quarter. GHE LLC lifted its stake in Chegg by 5.3% in the third quarter. GHE LLC now owns 50,517 shares of the technology company’s stock worth $451,000 after purchasing an additional 2,548 shares during the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. lifted its stake in Chegg by 5.3% in the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 51,276 shares of the technology company’s stock worth $457,000 after purchasing an additional 2,600 shares during the last quarter. Hedge funds and other institutional investors own 95.18% of the company’s stock.

About Chegg

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.