Chegg (NYSE:CHGG) Hits New 1-Year Low Following Analyst Downgrade

Chegg, Inc. (NYSE:CHGG)’s stock price hit a new 52-week low during mid-day trading on Tuesday 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 $5.57 and last traded at $5.64, with a volume of 4171957 shares changing hands. The stock had previously closed at $7.17.

A number of other research firms have also recently commented on CHGG. Piper Sandler Companies cut Chegg to an “underweight” rating and reduced their price objective for the company from $9.00 to $8.50 in a research report on Tuesday, February 6th. Piper Sandler lowered shares of Chegg from a “neutral” rating to an “underweight” rating and reduced their price target for the company from $9.00 to $8.50 in a research report on Tuesday, February 6th. The Goldman Sachs Group lowered their price objective on shares of Chegg from $8.00 to $7.00 and set a “sell” rating on the stock in a research note on Tuesday, February 6th. Morgan Stanley cut their target price on shares of Chegg from $8.50 to $7.00 and set an “underweight” rating for the company in a research report on Friday, April 19th. Finally, BMO Capital Markets decreased their price target on shares of Chegg from $11.00 to $10.00 and set a “market perform” rating on the stock in a research report on Tuesday, February 6th. Five equities research analysts have rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Chegg presently has a consensus rating of “Hold” and a consensus price target of $7.72.

Institutional Investors Weigh In On Chegg

Several large investors have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC bought a new stake in shares of Chegg in the 1st quarter worth about $30,000. Headlands Technologies LLC bought a new stake in Chegg during the fourth quarter worth approximately $48,000. Quest Partners LLC purchased a new stake in Chegg during the fourth quarter valued at approximately $114,000. Moors & Cabot Inc. purchased a new stake in Chegg during the third quarter valued at approximately $98,000. Finally, Shell Asset Management Co. lifted its stake in shares of Chegg by 48.8% in the 3rd quarter. Shell Asset Management Co. now owns 11,423 shares of the technology company’s stock valued at $102,000 after purchasing an additional 3,748 shares during the last quarter. 95.18% of the stock is owned by institutional investors.

Chegg Trading Up 4.1 %

The stock has a market cap of $546.45 million, a PE ratio of -28.32, a PEG ratio of 1.39 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. The stock has a fifty day moving average price of $7.60 and a 200 day moving average price of $9.04.

Chegg (NYSE:CHGG) last released its earnings results on Monday, February 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.36. The firm had revenue of $187.99 million during the quarter, compared to analyst estimates of $185.94 million. Chegg had a net margin of 2.07% and a return on equity of 0.86%. The business’s revenue was down 8.4% on a year-over-year basis. During the same quarter last year, the business earned $0.16 EPS. Equities analysts expect that Chegg, Inc. will post 0.26 EPS for the current year.

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.