Chegg, Inc. (NYSE:CHGG) Sees Significant Decline in Short Interest

Chegg, Inc. (NYSE:CHGG) was the recipient of a large decline in short interest in the month of November. As of November 30th, there was short interest totalling 9,930,000 shares, a decline of 7.0% from the November 15th total of 10,680,000 shares. Currently, 10.1% of the shares of the company are short sold. Based on an average daily volume of 4,120,000 shares, the short-interest ratio is presently 2.4 days.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. The Goldman Sachs Group dropped their price objective on Chegg from $3.75 to $1.75 and set a “neutral” rating for the company in a report on Thursday, November 14th. Northland Securities cut their price objective on shares of Chegg from $4.00 to $3.00 and set a “market perform” rating for the company in a research report on Wednesday, November 13th. Craig Hallum dropped their target price on shares of Chegg from $3.00 to $1.50 and set a “hold” rating for the company in a research report on Wednesday, November 13th. Needham & Company LLC reiterated a “hold” rating on shares of Chegg in a research report on Wednesday, November 13th. Finally, Piper Sandler lowered their price objective on shares of Chegg from $2.00 to $1.50 and set an “underweight” rating for the company in a research report on Thursday, November 14th. Three analysts have rated the stock with a sell rating and eight have given a hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $4.69.

Chegg Price Performance

Shares of CHGG traded down $0.12 during trading hours on Tuesday, reaching $2.20. The stock had a trading volume of 2,972,791 shares, compared to its average volume of 3,686,138. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.91 and a current ratio of 0.91. Chegg has a 12 month low of $1.34 and a 12 month high of $11.48. The stock has a market capitalization of $229.48 million, a PE ratio of -0.27 and a beta of 1.36. The company’s 50-day moving average is $1.89 and its two-hundred day moving average is $2.34.

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

Hedge Funds Weigh In On Chegg

Several large investors have recently modified their holdings of the business. Millennium Management LLC grew its stake in shares of Chegg by 158.4% in the second quarter. Millennium Management LLC now owns 2,221,344 shares of the technology company’s stock worth $7,019,000 after purchasing an additional 1,361,710 shares during the last quarter. XTX Topco Ltd lifted its holdings in Chegg by 384.4% during the 3rd quarter. XTX Topco Ltd now owns 394,152 shares of the technology company’s stock worth $698,000 after buying an additional 312,780 shares during the period. AQR Capital Management LLC grew its position in shares of Chegg by 284.9% in the 2nd quarter. AQR Capital Management LLC now owns 2,878,869 shares of the technology company’s stock valued at $8,694,000 after buying an additional 2,130,998 shares during the last quarter. SG Americas Securities LLC increased its stake in shares of Chegg by 242.5% in the third quarter. SG Americas Securities LLC now owns 106,993 shares of the technology company’s stock valued at $189,000 after buying an additional 75,751 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Chegg by 14.9% during the third quarter. Charles Schwab Investment Management Inc. now owns 911,333 shares of the technology company’s stock worth $1,613,000 after acquiring an additional 118,403 shares during the last quarter. Institutional investors own 95.18% of the company’s stock.

About Chegg

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.