Chegg (NYSE:CHGG) Stock Price Down 2.7% Following Analyst Downgrade

Shares of Chegg, Inc. (NYSE:CHGG) 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 mid-day 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 brokerages have also recently commented on CHGG. StockNews.com upgraded Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, January 23rd. JPMorgan Chase & Co. dropped their target price on shares of Chegg from $10.00 to $9.00 and set a “neutral” rating for the company in a report on Tuesday, February 6th. Piper Sandler Companies downgraded shares of Chegg to an “underweight” rating and decreased their price target for the stock from $9.00 to $8.50 in a research note on Tuesday, February 6th. The Goldman Sachs Group lowered their price target on shares of Chegg from $8.00 to $7.00 and set a “sell” rating on the stock in a research report on Tuesday, February 6th. Finally, Piper Sandler downgraded shares of Chegg from a “neutral” rating to an “underweight” rating and cut their price objective for the company from $9.00 to $8.50 in a report on Tuesday, February 6th. Five equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $7.72.

Institutional Investors Weigh In On Chegg

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC purchased a new stake in shares of Chegg in the 1st quarter valued at approximately $30,000. Headlands Technologies LLC acquired a new position in Chegg during the fourth quarter worth $48,000. Moors & Cabot Inc. purchased a new position in shares of Chegg during the third quarter worth $98,000. Shell Asset Management Co. grew its stake in shares of Chegg by 48.8% in the third quarter. Shell Asset Management Co. now owns 11,423 shares of the technology company’s stock valued at $102,000 after buying an additional 3,748 shares in the last quarter. Finally, Quest Partners LLC purchased a new stake in shares of Chegg in the 4th quarter valued at $114,000. Institutional investors and hedge funds own 95.18% of the company’s stock.

Chegg Trading Down 28.0 %

The company has a 50 day moving average of $7.74 and a 200-day moving average of $9.08. The stock 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 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 issued its quarterly 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. Chegg had a net margin of 2.54% and a return on equity of 1.27%. The business had revenue of $187.99 million for the quarter, compared to analysts’ expectations of $185.94 million. During the same quarter in the prior year, the company earned $0.16 earnings per share. The business’s quarterly revenue was down 8.4% on a year-over-year basis. On average, research analysts anticipate that Chegg, Inc. will post 0.26 earnings per share 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.