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

Chegg, Inc. (NYSE:CHGG) was the target of some unusual options trading on Monday. Stock traders acquired 3,305 call options on the stock. This represents an increase of approximately 42% compared to the typical volume of 2,321 call options.

Hedge Funds Weigh In On Chegg

Several institutional investors and hedge funds have recently modified their holdings of CHGG. Pallas Capital Advisors LLC lifted its holdings in shares of Chegg by 60.5% in the 4th quarter. Pallas Capital Advisors LLC now owns 17,659 shares of the technology company’s stock valued at $28,000 after buying an additional 6,658 shares during the period. Caprock Group LLC acquired a new position in shares of Chegg in the 4th quarter valued at about $28,000. Virtus Fund Advisers LLC acquired a new position in shares of Chegg in the 4th quarter valued at about $28,000. Ieq Capital LLC acquired a new position in shares of Chegg in the 4th quarter valued at about $31,000. Finally, Point72 Asia Singapore Pte. Ltd. lifted its holdings in shares of Chegg by 272.2% in the 3rd quarter. Point72 Asia Singapore Pte. Ltd. now owns 25,051 shares of the technology company’s stock valued at $44,000 after buying an additional 18,320 shares during the period. Institutional investors and hedge funds own 95.18% of the company’s stock.

Chegg Stock Performance

Shares of CHGG opened at $1.59 on Tuesday. The stock has a 50-day moving average of $1.58 and a two-hundred day moving average of $1.80. Chegg has a one year low of $1.30 and a one year high of $9.14. 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 cap of $165.33 million, a P/E ratio of -0.20 and a beta of 1.41.

Chegg (NYSE:CHGG) last issued its quarterly earnings results on Monday, February 24th. The technology company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.14). Chegg had a positive return on equity of 2.36% and a negative net margin of 124.05%. As a group, research analysts predict that Chegg will post 0.15 EPS for the current year.

Analysts Set New Price Targets

Several research firms have recently issued reports on CHGG. Northland Securities lowered their price objective on Chegg from $4.00 to $3.00 and set a “market perform” rating for the company in a research note on Wednesday, November 13th. Needham & Company LLC reissued a “hold” rating on shares of Chegg in a research note on Thursday, January 16th. Morgan Stanley reissued an “underweight” rating and set a $1.25 price target (down from $2.00) on shares of Chegg in a research note on Tuesday, January 14th. The Goldman Sachs Group reduced their price objective on Chegg from $3.75 to $1.75 and set a “neutral” rating on the stock in a report on Thursday, November 14th. Finally, Craig Hallum reduced their price objective on Chegg from $3.00 to $1.50 and set a “hold” rating on the stock in a report on Wednesday, November 13th. Three equities research analysts have rated the stock with a sell rating and five have issued a hold rating to the company. Based on data from MarketBeat, Chegg presently has an average rating of “Hold” and a consensus target price of $2.17.

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.