Divisadero Street Capital Management LP Acquires New Holdings in Chegg, Inc. (NYSE:CHGG)

Divisadero Street Capital Management LP bought a new position in shares of Chegg, Inc. (NYSE:CHGG) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 1,107,992 shares of the technology company’s stock, valued at approximately $3,501,000. Divisadero Street Capital Management LP owned 1.08% of Chegg as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position 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 valued at $132,117,000 after purchasing an additional 809,530 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Chegg by 10.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 4,585,055 shares of the technology company’s stock valued at $14,488,000 after buying an additional 433,709 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its position in Chegg by 4.0% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 2,747,406 shares of the technology company’s stock worth $20,798,000 after buying an additional 105,511 shares during the period. Acadian Asset Management LLC lifted its holdings in shares of Chegg by 11,517.3% during the second quarter. Acadian Asset Management LLC now owns 2,154,885 shares of the technology company’s stock worth $6,807,000 after buying an additional 2,136,336 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its position in shares of Chegg by 23,988.4% in the second quarter. Allspring Global Investments Holdings LLC now owns 947,637 shares of the technology company’s stock valued at $2,995,000 after acquiring an additional 943,703 shares during the period. Institutional investors and hedge funds own 95.18% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on CHGG shares. Morgan Stanley dropped their target price on shares of Chegg from $3.25 to $3.00 and set an “equal weight” rating on the stock in a research report on Tuesday, August 6th. The Goldman Sachs Group upgraded shares of Chegg from a “sell” rating to a “neutral” rating and reduced their target price for the company from $7.00 to $3.75 in a research note on Tuesday, August 6th. Needham & Company LLC restated a “hold” rating on shares of Chegg in a research note on Tuesday, August 6th. StockNews.com downgraded Chegg from a “buy” rating to a “hold” rating in a research report on Tuesday, August 6th. Finally, Craig Hallum decreased their price objective on Chegg from $7.00 to $3.00 and set a “hold” rating on the stock in a report on Wednesday, August 7th. Three research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $5.47.

Chegg Stock Performance

Shares of NYSE:CHGG opened at $1.85 on Friday. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.89 and a quick ratio of 0.89. The business’s fifty day moving average price is $2.48 and its two-hundred day moving average price is $4.36. Chegg, Inc. has a fifty-two week low of $1.72 and a fifty-two week high of $11.48. The stock has a market capitalization of $188.59 million, a price-to-earnings ratio of -9.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.31.

Chegg (NYSE:CHGG) last posted its earnings results on Monday, August 5th. The technology company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.03. Chegg had a negative net margin of 91.74% and a positive return on equity of 2.10%. The business had revenue of $163.10 million for the quarter, compared to analyst estimates of $160.02 million. During the same quarter in the prior year, the firm earned $0.01 EPS. The firm’s quarterly revenue was down 10.8% compared to the same quarter last year. As a group, analysts predict that Chegg, Inc. will post 0.19 EPS for the current fiscal 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.