Chegg, Inc. (CHGG) Lowered to “Sell” at Zacks Investment Research
Zacks Investment Research lowered shares of Chegg, Inc. (NYSE:CHGG) from a hold rating to a sell rating in a research report released on Wednesday.
According to Zacks, “Chegg, Inc. provides a social education platform. The Company rents and sells print textbooks; and provides eTextbooks, supplemental materials, homework help, textbook buyback, courses, and college admissions and scholarship services, as well as offers enrollment marketing and brand advertising services. Chegg, Inc. is headquartered in Santa Clara, California. “
Other research analysts also recently issued reports about the stock. BidaskClub downgraded shares of Chegg from a strong-buy rating to a buy rating in a research note on Wednesday, August 2nd. Northland Securities reaffirmed a buy rating and issued a $16.00 target price on shares of Chegg in a research note on Friday, July 28th. Jefferies Group LLC reaffirmed a buy rating and issued a $13.00 target price on shares of Chegg in a research note on Friday, June 23rd. Lake Street Capital downgraded shares of Chegg from a buy rating to a hold rating and lifted their target price for the stock from $12.00 to $14.00 in a research note on Wednesday, July 26th. Finally, Barrington Research reaffirmed an outperform rating on shares of Chegg in a research note on Friday, June 23rd. One research analyst has rated the stock with a sell rating, three have given a hold rating and nine have assigned a buy rating to the company. The stock presently has a consensus rating of Buy and an average target price of $13.68.
Shares of Chegg (CHGG) opened at 15.38 on Wednesday. Chegg has a 52-week low of $6.51 and a 52-week high of $15.95. The stock’s 50 day moving average is $14.61 and its 200 day moving average is $12.37. The firm’s market capitalization is $1.48 billion.
Chegg (NYSE:CHGG) last issued its earnings results on Tuesday, July 25th. The technology company reported ($0.04) EPS for the quarter, missing the consensus estimate of $0.04 by ($0.08). Chegg had a negative return on equity of 8.10% and a negative net margin of 11.83%. The firm had revenue of $56.30 million during the quarter, compared to analysts’ expectations of $53.33 million. During the same period in the previous year, the firm earned $0.05 earnings per share. The firm’s quarterly revenue was up 6.2% compared to the same quarter last year. On average, equities research analysts forecast that Chegg will post $0.24 EPS for the current year.
In other Chegg news, insider Charles Geiger sold 56,970 shares of the business’s stock in a transaction on Monday, October 2nd. The shares were sold at an average price of $14.96, for a total transaction of $852,271.20. Following the transaction, the insider now directly owns 543,470 shares of the company’s stock, valued at approximately $8,130,311.20. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, General Counsel Dave Jr. Borders sold 13,256 shares of the company’s stock in a transaction dated Monday, October 2nd. The stock was sold at an average price of $15.06, for a total transaction of $199,635.36. Following the completion of the sale, the general counsel now directly owns 443,810 shares in the company, valued at $6,683,778.60. The disclosure for this sale can be found here. Over the last three months, insiders have sold 472,494 shares of company stock worth $6,712,525. Insiders own 20.40% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Pier Capital LLC grew its position in shares of Chegg by 2.8% in the 2nd quarter. Pier Capital LLC now owns 363,940 shares of the technology company’s stock worth $4,473,000 after buying an additional 9,853 shares during the period. Russell Investments Group Ltd. grew its position in shares of Chegg by 20.5% in the 1st quarter. Russell Investments Group Ltd. now owns 401,780 shares of the technology company’s stock worth $3,391,000 after buying an additional 68,448 shares during the period. Schwab Charles Investment Management Inc. grew its position in shares of Chegg by 4.8% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 229,459 shares of the technology company’s stock worth $1,937,000 after buying an additional 10,602 shares during the period. Brighton Jones LLC purchased a new stake in shares of Chegg in the 2nd quarter worth about $481,000. Finally, Crawford Lake Capital Management LLC purchased a new stake in shares of Chegg in the 2nd quarter worth about $2,305,000. 84.80% of the stock is currently owned by hedge funds and other institutional investors.
Chegg Company Profile
Chegg, Inc is a student-first connected learning platform. The Company helps students study for college admission exams, find the colleges, get grades and test scores while in school, and find internships that allow them to gain skills to help them enter the workforce after college. The Company matches domestic and international students with colleges, universities and other academic institutions (collectively referred to as colleges) in the United States.
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