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

Chegg, Inc. (NYSE:CHGG) saw unusually large options trading on Monday. Stock investors purchased 3,305 call options on the company. This represents an increase of approximately 42% compared to the average volume of 2,321 call options.

Chegg Price Performance

Shares of Chegg stock opened at $1.59 on Tuesday. The business has a 50 day simple moving average of $1.58 and a two-hundred day simple moving average of $1.80. Chegg has a 12 month low of $1.30 and a 12 month high of $9.14. The stock has a market capitalization of $165.33 million, a P/E ratio of -0.20 and a beta of 1.41. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.91 and a quick ratio of 0.91.

Chegg (NYSE:CHGG) last posted its quarterly earnings results on Monday, February 24th. The technology company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.14). Chegg had a negative net margin of 124.05% and a positive return on equity of 2.36%. As a group, analysts predict that Chegg will post 0.15 EPS for the current fiscal year.

Institutional Investors Weigh In On Chegg

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Virtus Fund Advisers LLC acquired a new stake in shares of Chegg in the fourth quarter valued at approximately $28,000. Caprock Group LLC acquired a new stake in Chegg during the fourth quarter worth $28,000. Pallas Capital Advisors LLC increased its stake in Chegg by 60.5% during the fourth quarter. Pallas Capital Advisors LLC now owns 17,659 shares of the technology company’s stock worth $28,000 after acquiring an additional 6,658 shares during the last quarter. Ieq Capital LLC acquired a new stake in Chegg during the fourth quarter worth $31,000. Finally, Point72 Asia Singapore Pte. Ltd. increased its stake in Chegg by 272.2% during the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 25,051 shares of the technology company’s stock worth $44,000 after acquiring an additional 18,320 shares during the last quarter. Institutional investors and hedge funds own 95.18% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on CHGG shares. The Goldman Sachs Group lowered their price target on Chegg from $3.75 to $1.75 and set a “neutral” rating on the stock in a research report on Thursday, November 14th. Needham & Company LLC reiterated a “hold” rating on shares of Chegg in a research report on Thursday, January 16th. Piper Sandler reduced their target price on Chegg from $2.00 to $1.50 and set an “underweight” rating for the company in a report on Thursday, November 14th. Craig Hallum reduced their target price on Chegg from $3.00 to $1.50 and set a “hold” rating for the company in a report on Wednesday, November 13th. Finally, Morgan Stanley reissued an “underweight” rating and set a $1.25 target price (down previously from $2.00) on shares of Chegg in a report on Tuesday, January 14th. Three equities research analysts have rated the stock with a sell rating and five have assigned a hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $2.17.

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.