Wall Street analysts predict that Chegg Inc (NYSE:CHGG) will report earnings of $0.21 per share for the current quarter, Zacks Investment Research reports. Five analysts have made estimates for Chegg’s earnings, with the lowest EPS estimate coming in at $0.19 and the highest estimate coming in at $0.23. Chegg posted earnings per share of $0.15 in the same quarter last year, which would indicate a positive year over year growth rate of 40%. The firm is scheduled to issue its next quarterly earnings report on Monday, February 11th.
On average, analysts expect that Chegg will report full year earnings of $0.50 per share for the current year, with EPS estimates ranging from $0.44 to $0.53. For the next fiscal year, analysts anticipate that the firm will post earnings of $0.63 per share, with EPS estimates ranging from $0.56 to $0.71. Zacks’ EPS averages are a mean average based on a survey of research analysts that cover Chegg.
Chegg (NYSE:CHGG) last released its quarterly earnings data on Monday, October 29th. The technology company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.04. Chegg had a negative net margin of 5.55% and a positive return on equity of 1.75%. The business had revenue of $74.20 million during the quarter, compared to analyst estimates of $69.02 million. During the same quarter in the previous year, the business earned $0.01 EPS. Chegg’s quarterly revenue was up 18.5% compared to the same quarter last year.
Several equities research analysts recently issued reports on the stock. Jefferies Financial Group reduced their price objective on shares of Chegg from $30.00 to $28.00 and set a “hold” rating for the company in a research note on Tuesday, October 30th. First Analysis raised shares of Chegg from a “neutral” rating to an “outperform” rating and set a $30.00 price objective for the company in a research note on Tuesday, October 30th. Citigroup raised shares of Chegg from a “neutral” rating to a “buy” rating in a research note on Thursday, October 25th. Barrington Research reaffirmed a “buy” rating and issued a $32.00 price objective on shares of Chegg in a research note on Monday, October 22nd. Finally, Zacks Investment Research raised shares of Chegg from a “hold” rating to a “buy” rating and set a $31.00 price objective for the company in a research note on Tuesday, October 9th. Five research analysts have rated the stock with a hold rating, seven have issued a buy rating and two have given a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $26.80.
In related news, General Counsel Dave Jr. Borders sold 15,000 shares of Chegg stock in a transaction on Monday, October 1st. The shares were sold at an average price of $28.31, for a total value of $424,650.00. Following the transaction, the general counsel now owns 467,584 shares in the company, valued at approximately $13,237,303.04. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Daniel Rosensweig sold 150,000 shares of Chegg stock in a transaction on Friday, October 12th. The stock was sold at an average price of $25.43, for a total transaction of $3,814,500.00. Following the completion of the transaction, the chief executive officer now owns 2,378,305 shares in the company, valued at approximately $60,480,296.15. The disclosure for this sale can be found here. Insiders sold a total of 565,000 shares of company stock worth $16,156,650 in the last quarter. Insiders own 10.80% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in CHGG. Legal & General Group Plc increased its holdings in shares of Chegg by 54.4% during the 1st quarter. Legal & General Group Plc now owns 37,669 shares of the technology company’s stock worth $778,000 after purchasing an additional 13,266 shares during the period. Xact Kapitalforvaltning AB increased its holdings in shares of Chegg by 34.8% during the 1st quarter. Xact Kapitalforvaltning AB now owns 13,932 shares of the technology company’s stock worth $288,000 after purchasing an additional 3,600 shares during the period. Baillie Gifford & Co. increased its holdings in shares of Chegg by 10.7% during the 2nd quarter. Baillie Gifford & Co. now owns 4,663,439 shares of the technology company’s stock worth $129,597,000 after purchasing an additional 450,585 shares during the period. Amalgamated Bank increased its holdings in shares of Chegg by 25.0% during the 2nd quarter. Amalgamated Bank now owns 16,246 shares of the technology company’s stock worth $451,000 after purchasing an additional 3,254 shares during the period. Finally, NewSquare Capital LLC bought a new position in shares of Chegg during the 2nd quarter worth about $178,000.
Shares of CHGG stock traded down $0.36 on Monday, hitting $26.36. The company’s stock had a trading volume of 25,902 shares, compared to its average volume of 1,587,488. The company has a current ratio of 6.56, a quick ratio of 6.56 and a debt-to-equity ratio of 0.72. Chegg has a fifty-two week low of $13.75 and a fifty-two week high of $32.82. The firm has a market cap of $3.07 billion, a PE ratio of -292.89, a PEG ratio of 10.36 and a beta of 1.43.
Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.
Further Reading: Compound Annual Growth Rate (CAGR)
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