Chegg, Inc. (NYSE:CHGG) Sees Large Drop in Short Interest

Chegg, Inc. (NYSE:CHGG) was the target of a large decline in short interest in the month of July. As of July 31st, there was short interest totalling 14,040,000 shares, a decline of 17.4% from the July 15th total of 17,000,000 shares. Based on an average daily volume of 4,300,000 shares, the days-to-cover ratio is presently 3.3 days. Approximately 14.3% of the shares of the company are sold short.

Institutional Trading of Chegg

Institutional investors and hedge funds have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC purchased a new stake in Chegg during the 1st quarter valued at approximately $30,000. Headlands Technologies LLC purchased a new position in shares of Chegg in the 4th quarter worth $48,000. Gladius Capital Management LP purchased a new position in shares of Chegg in the 2nd quarter worth $27,000. Quest Partners LLC purchased a new position in Chegg in the fourth quarter valued at about $114,000. Finally, Adero Partners LLC acquired a new stake in shares of Chegg during the second quarter valued at about $34,000. 95.18% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Northland Securities cut their price objective on Chegg from $7.00 to $6.00 and set a “market perform” rating for the company in a research note on Tuesday, August 6th. Morgan Stanley decreased their price objective on Chegg from $3.25 to $3.00 and set an “equal weight” rating on the stock in a report on Tuesday, August 6th. StockNews.com cut Chegg from a “buy” rating to a “hold” rating in a report on Tuesday, August 6th. Craig Hallum decreased their price target on Chegg from $7.00 to $3.00 and set a “hold” rating on the stock in a report on Wednesday, August 7th. Finally, Jefferies Financial Group downgraded Chegg from a “hold” rating to an “underperform” rating and cut their price objective for the company from $7.00 to $4.00 in a research report on Tuesday, April 30th. Three analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $5.47.

Chegg Price Performance

NYSE:CHGG opened at $2.05 on Friday. Chegg has a 52 week low of $1.95 and a 52 week high of $11.48. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $209.54 million, a P/E ratio of -10.79, a P/E/G ratio of 0.56 and a beta of 1.35. The stock’s fifty day moving average is $2.92 and its two-hundred day moving average is $5.52.

Chegg (NYSE:CHGG) last released its earnings results on Monday, August 5th. The technology company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.21 by $0.03. The firm had revenue of $163.10 million during the quarter, compared to analysts’ expectations of $160.02 million. Chegg had a return on equity of 0.87% and a net margin of 2.07%. Chegg’s revenue for the quarter was down 10.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.01 EPS. Equities analysts expect that Chegg will post 0.28 EPS 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.