Chegg Target of Unusually High Options Trading (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) was the recipient of unusually large options trading on Monday. Stock investors acquired 9,955 call options on the company. This represents an increase of 392% compared to the typical volume of 2,024 call options.

Chegg Price Performance

Chegg stock opened at $1.45 on Tuesday. Chegg has a 52 week low of $1.34 and a 52 week high of $9.75. The stock has a fifty day moving average of $1.85 and a 200-day moving average of $1.97. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.91 and a current ratio of 0.91. The stock has a market capitalization of $150.73 million, a P/E ratio of -0.18 and a beta of 1.41.

Chegg (NYSE:CHGG) last announced its quarterly earnings data on Tuesday, November 12th. The technology company reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.06 by $0.03. The firm had revenue of $136.59 million during the quarter, compared to analysts’ expectations of $134.12 million. Chegg had a positive return on equity of 2.36% and a negative net margin of 124.05%. The company’s revenue for the quarter was down 13.5% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.07) earnings per share. On average, sell-side analysts expect that Chegg will post 0.12 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have recently weighed in on CHGG. Morgan Stanley reissued an “underweight” rating and issued a $1.25 price objective (down from $2.00) on shares of Chegg in a report on Tuesday, January 14th. Craig Hallum decreased their price target on Chegg from $3.00 to $1.50 and set a “hold” rating for the company in a report on Wednesday, November 13th. Needham & Company LLC restated a “hold” rating on shares of Chegg in a research note on Thursday, January 16th. The Goldman Sachs Group dropped their target price on shares of Chegg from $3.75 to $1.75 and set a “neutral” rating for the company in a report on Thursday, November 14th. Finally, Piper Sandler decreased their target price on shares of Chegg from $2.00 to $1.50 and set an “underweight” rating on the stock in a research report on Thursday, November 14th. Four analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company. According to data from MarketBeat, Chegg presently has a consensus rating of “Hold” and an average price target of $4.50.

Institutional Trading of Chegg

A number of hedge funds and other institutional investors have recently made changes to their positions in CHGG. Dimensional Fund Advisors LP boosted its holdings in Chegg by 10.4% during 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 acquiring an additional 433,709 shares during the period. Geode Capital Management LLC boosted its stake in Chegg by 1.2% during the 3rd quarter. Geode Capital Management LLC now owns 2,315,187 shares of the technology company’s stock valued at $4,099,000 after purchasing an additional 26,574 shares during the last quarter. Millennium Management LLC boosted its stake in Chegg by 158.4% during the 2nd quarter. Millennium Management LLC now owns 2,221,344 shares of the technology company’s stock valued at $7,019,000 after purchasing an additional 1,361,710 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its stake in shares of Chegg by 14.9% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 911,333 shares of the technology company’s stock worth $1,613,000 after purchasing an additional 118,403 shares during the period. Finally, XTX Topco Ltd grew its holdings in Chegg by 384.4% during the third quarter. XTX Topco Ltd now owns 394,152 shares of the technology company’s stock valued at $698,000 after purchasing an additional 312,780 shares during the period. 95.18% of the stock is currently owned by institutional investors.

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.