Chegg (CHGG) Rating Lowered to Hold at Zacks Investment Research

Chegg (NYSE:CHGG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.

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. “

A number of other research analysts also recently weighed in on CHGG. Citigroup raised Chegg from a “neutral” rating to a “buy” rating in a report on Thursday, October 25th. Barrington Research reissued a “buy” rating and issued a $32.00 target price on shares of Chegg in a report on Monday, October 22nd. Craig Hallum raised Chegg from a “hold” rating to a “buy” rating in a report on Tuesday, October 2nd. Morgan Stanley increased their target price on Chegg from $24.00 to $28.00 and gave the company a “hold” rating in a report on Wednesday, August 1st. Finally, Lake Street Capital increased their target price on Chegg from $20.00 to $26.00 and gave the company a “hold” rating in a report on Tuesday, July 31st. Six equities research analysts have rated the stock with a hold rating, six have given a buy rating and two have issued a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $26.80.

Shares of NYSE:CHGG opened at $26.62 on Monday. The firm has a market cap of $3.07 billion, a PE ratio of -295.78, a price-to-earnings-growth ratio of 10.36 and a beta of 1.43. The company has a debt-to-equity ratio of 0.72, a quick ratio of 6.56 and a current ratio of 6.56. Chegg has a 1 year low of $13.75 and a 1 year high of $32.82.

Chegg (NYSE:CHGG) last announced its quarterly earnings results on Monday, October 29th. The technology company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.04. The firm had revenue of $74.20 million for the quarter, compared to the consensus estimate of $69.02 million. Chegg had a positive return on equity of 1.75% and a negative net margin of 5.55%. The company’s quarterly revenue was up 18.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.01 earnings per share. On average, research analysts predict that Chegg will post 0.09 earnings per share for the current fiscal year.

In other Chegg news, insider Jenny Brandemuehl sold 75,000 shares of the company’s stock in a transaction dated Monday, October 1st. The stock was sold at an average price of $28.50, for a total value of $2,137,500.00. Following the completion of the sale, the insider now owns 516,962 shares in the company, valued at $14,733,417. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Daniel Rosensweig sold 150,000 shares of the company’s stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $31.07, for a total value of $4,660,500.00. Following the completion of the sale, the chief executive officer now owns 2,435,450 shares of the company’s stock, valued at approximately $75,669,431.50. The disclosure for this sale can be found here. In the last three months, insiders sold 565,000 shares of company stock worth $16,156,650. 10.80% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. increased its position in Chegg by 17.3% in the second quarter. BlackRock Inc. now owns 6,648,320 shares of the technology company’s stock worth $184,758,000 after buying an additional 978,343 shares in the last quarter. FMR LLC increased its position in Chegg by 19.3% in the second quarter. FMR LLC now owns 6,321,121 shares of the technology company’s stock worth $175,664,000 after buying an additional 1,022,400 shares in the last quarter. Baillie Gifford & Co. increased its position in Chegg by 10.7% in the second quarter. Baillie Gifford & Co. now owns 4,663,439 shares of the technology company’s stock worth $129,597,000 after buying an additional 450,585 shares in the last quarter. Artisan Partners Limited Partnership increased its position in Chegg by 0.7% in the second quarter. Artisan Partners Limited Partnership now owns 1,479,400 shares of the technology company’s stock worth $41,113,000 after buying an additional 9,686 shares in the last quarter. Finally, Northern Trust Corp increased its position in Chegg by 16.6% in the second quarter. Northern Trust Corp now owns 1,326,785 shares of the technology company’s stock worth $36,872,000 after buying an additional 188,758 shares in the last quarter.

Chegg Company Profile

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.

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