Chegg (NYSE:CHGG) Reaches New 52-Week Low After Analyst Downgrade

Chegg, Inc. (NYSE:CHGG) shares 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.

CHGG has been the topic of several other reports. StockNews.com upgraded Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, January 23rd. Piper Sandler Companies lowered shares of Chegg to an “underweight” rating and cut their price objective for the stock from $9.00 to $8.50 in a report on Tuesday, February 6th. The Goldman Sachs Group decreased their target price 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. Morgan Stanley dropped their price target 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 report on Tuesday, February 6th. Five investment analysts have rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $7.72.

Hedge Funds Weigh In On Chegg

Hedge funds have recently made changes to their positions in the business. Sylebra Capital LLC purchased a new position in Chegg in the 3rd quarter worth approximately $61,286,000. Boston Partners acquired a new stake in shares of Chegg during the fourth quarter valued at about $12,091,000. Federated Hermes Inc. increased its position in shares of Chegg by 229.8% during the fourth quarter. Federated Hermes Inc. now owns 1,254,339 shares of the technology company’s stock worth $14,249,000 after acquiring an additional 873,984 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Chegg by 7.5% in the fourth quarter. Vanguard Group Inc. now owns 11,630,011 shares of the technology company’s stock worth $132,117,000 after acquiring an additional 809,530 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Chegg by 39.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,648,182 shares of the technology company’s stock valued at $30,084,000 after purchasing an additional 750,677 shares during the last quarter. Hedge funds and other institutional investors own 95.18% of the company’s stock.

Chegg Price Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 0.80 and a quick ratio of 0.80. The business has a fifty 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 PE ratio of -32.31, a P/E/G ratio of 1.38 and a beta of 1.26.

Chegg (NYSE:CHGG) last released its earnings results on Monday, February 5th. The technology company reported $0.36 EPS for the quarter, meeting the consensus estimate of $0.36. The company had revenue of $187.99 million during the quarter, compared to analysts’ expectations of $185.94 million. Chegg had a return on equity of 1.27% and a net margin of 2.54%. The business’s revenue was down 8.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.16 EPS. Sell-side 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.