Chegg (NYSE:CHGG) Reaches New 12-Month Low After Analyst Downgrade

Chegg, Inc. (NYSE:CHGG)’s stock price hit a new 52-week low 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. The stock had previously closed at $7.17.

A number of other research analysts have also commented on CHGG. The Goldman Sachs Group lowered their price target on Chegg from $8.00 to $7.00 and set a “sell” rating on the stock in a report on Tuesday, February 6th. StockNews.com upgraded Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, January 23rd. JPMorgan Chase & Co. lowered their price target on Chegg from $10.00 to $9.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 6th. Piper Sandler downgraded Chegg from a “neutral” rating to an “underweight” rating and dropped their price objective for the stock from $9.00 to $8.50 in a research note on Tuesday, February 6th. Finally, BMO Capital Markets lowered their target price on Chegg from $11.00 to $10.00 and set a “market perform” rating on the stock in a report on Tuesday, February 6th. Five 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. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $7.72.

Hedge Funds Weigh In On Chegg

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Chegg by 7.5% during the 4th quarter. Vanguard Group Inc. now owns 11,630,011 shares of the technology company’s stock worth $132,117,000 after purchasing an additional 809,530 shares in the last quarter. Sylebra Capital LLC acquired a new stake in shares of Chegg during the third quarter worth approximately $61,286,000. Jacobs Levy Equity Management Inc. raised its stake in shares of Chegg by 14.5% in the third quarter. Jacobs Levy Equity Management Inc. now owns 2,663,462 shares of the technology company’s stock valued at $23,758,000 after acquiring an additional 337,680 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Chegg by 39.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,648,182 shares of the technology company’s stock worth $30,084,000 after acquiring an additional 750,677 shares in the last quarter. Finally, Federated Hermes Inc. grew its position in Chegg by 229.8% during the 4th 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. Institutional investors and hedge funds own 95.18% of the company’s stock.

Chegg Price Performance

The stock has a fifty day moving average of $7.74 and a two-hundred day moving average of $9.08. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $580.98 million, a price-to-earnings ratio of -35.63, a PEG ratio of 1.38 and a beta of 1.26.

Chegg (NYSE:CHGG) last posted its quarterly earnings data on Monday, February 5th. The technology company reported $0.36 earnings per share for the quarter, meeting the consensus estimate of $0.36. Chegg had a net margin of 2.54% and a return on equity of 1.27%. The firm had revenue of $187.99 million during the quarter, compared to analysts’ expectations of $185.94 million. During the same quarter last year, the company posted $0.16 EPS. The company’s quarterly revenue was down 8.4% compared to the same quarter last year. As a group, equities research analysts forecast that Chegg, Inc. will post 0.26 earnings per share for the current year.

Chegg Company Profile

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.