Chegg (NYSE:CHGG) Downgraded by Zacks Investment Research to Sell

Chegg (NYSE:CHGG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday, Zacks.com reports.

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. “

Several other research firms have also commented on CHGG. Northland Securities upped their price target on shares of Chegg from $95.00 to $110.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 9th. Morgan Stanley increased their target price on shares of Chegg from $105.00 to $115.00 and gave the company an “overweight” rating in a research report on Tuesday, February 9th. Needham & Company LLC reiterated a “buy” rating and issued a $120.00 target price on shares of Chegg in a research report on Monday, March 22nd. BMO Capital Markets increased their target price on shares of Chegg from $91.00 to $106.00 and gave the company a “market perform” rating in a research report on Tuesday, February 9th. Finally, Craig Hallum increased their target price on shares of Chegg from $105.00 to $125.00 and gave the company a “buy” rating in a research report on Tuesday, February 9th. Three analysts have rated the stock with a sell rating, three have given a hold rating and twelve have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $104.22.

Shares of Chegg stock traded up $0.17 during trading on Tuesday, hitting $83.18. 5,323,309 shares of the stock were exchanged, compared to its average volume of 1,848,514. The stock’s fifty day moving average is $90.07 and its 200 day moving average is $88.74. The stock has a market cap of $11.80 billion, a PE ratio of -415.90, a P/E/G ratio of 3.14 and a beta of 0.99. The company has a debt-to-equity ratio of 2.38, a quick ratio of 9.09 and a current ratio of 9.09. Chegg has a 12 month low of $53.00 and a 12 month high of $115.21.

Chegg (NYSE:CHGG) last released its quarterly earnings results on Sunday, May 2nd. The technology company reported $0.28 EPS for the quarter, missing the consensus estimate of $0.30 by ($0.02). The firm had revenue of $198.40 million for the quarter, compared to the consensus estimate of $184.59 million. Chegg had a positive return on equity of 13.35% and a negative net margin of 4.26%. The firm’s revenue was up 50.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.22 EPS. Sell-side analysts anticipate that Chegg will post 0.69 EPS for the current fiscal year.

In other Chegg news, CEO Daniel Rosensweig sold 300,000 shares of the company’s stock in a transaction dated Monday, February 22nd. The shares were sold at an average price of $99.55, for a total transaction of $29,865,000.00. Following the completion of the sale, the chief executive officer now directly owns 1,607,090 shares of the company’s stock, valued at $159,985,809.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Nathan J. Schultz sold 30,000 shares of the company’s stock in a transaction dated Monday, April 26th. The shares were sold at an average price of $95.26, for a total transaction of $2,857,800.00. Following the sale, the insider now directly owns 257,127 shares of the company’s stock, valued at $24,493,918.02. The disclosure for this sale can be found here. Insiders have sold 465,668 shares of company stock valued at $45,003,983 over the last ninety days. Insiders own 3.10% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of CHGG. Norges Bank purchased a new stake in shares of Chegg in the fourth quarter worth approximately $113,733,000. FMR LLC lifted its position in shares of Chegg by 18,377.4% in the first quarter. FMR LLC now owns 599,961 shares of the technology company’s stock worth $22,871,000 after purchasing an additional 596,714 shares in the last quarter. Berkshire Capital Holdings Inc. lifted its position in shares of Chegg by 4,878,100.0% in the fourth quarter. Berkshire Capital Holdings Inc. now owns 487,820 shares of the technology company’s stock worth $44,065,000 after purchasing an additional 487,810 shares in the last quarter. Artisan Partners Limited Partnership lifted its position in shares of Chegg by 6.7% in the fourth quarter. Artisan Partners Limited Partnership now owns 7,472,262 shares of the technology company’s stock worth $674,969,000 after purchasing an additional 466,328 shares in the last quarter. Finally, Sands Capital Management LLC lifted its position in shares of Chegg by 37.3% in the fourth quarter. Sands Capital Management LLC now owns 1,589,373 shares of the technology company’s stock worth $143,568,000 after purchasing an additional 431,515 shares in the last quarter. 98.48% of the stock is owned by institutional investors and hedge funds.

Chegg Company Profile

Chegg, Inc engages in the operations of learning platform for students. It intends to empower students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades and test scores. The firm offers required and non-required scholastic materials including textbooks in any format, access to online homework help and textbook solutions, course organization and scheduling, college and university matching tools and scholarship connections.

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