Chegg (NYSE:CHGG) Share Price Breaks Below 200 Day Moving Average – What’s Next?

Chegg, Inc. (NYSE:CHGG) shares passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $0.94 and traded as low as $0.7020. Chegg shares last traded at $0.7230, with a volume of 488,900 shares.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Chegg in a research note on Friday, September 18th. Zacks Research lowered Chegg from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce”.

Chegg Price Performance

The firm’s 50-day moving average price is $0.82 and its 200 day moving average price is $0.94. The firm has a market capitalization of $81.16 million, a price-to-earnings ratio of -1.49 and a beta of 2.16.

Chegg (NYSE:CHGG) last posted its earnings results on Thursday, August 6th. The technology company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.03. The firm had revenue of $51.85 million for the quarter, compared to analyst estimates of $49.50 million. Chegg had a negative return on equity of 13.38% and a negative net margin of 19.96%. On average, analysts predict that Chegg, Inc. will post -0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Chegg news, Director Renee Budig sold 54,347 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $0.78, for a total value of $42,390.66. Following the transaction, the director directly owned 376,311 shares in the company, valued at approximately $293,522.58. This represents a 12.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.00% of the company’s stock.

Hedge Funds Weigh In On Chegg

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Chegg during the 2nd quarter valued at approximately $2,268,000. GSA Capital Partners LLP acquired a new position in shares of Chegg in the 2nd quarter valued at approximately $836,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Chegg during the 2nd quarter valued at approximately $809,000. Empowered Funds LLC purchased a new position in shares of Chegg during the 2nd quarter valued at approximately $408,000. Finally, Bank of America Corp DE acquired a new stake in shares of Chegg during the second quarter worth approximately $264,000. Institutional investors and hedge funds own 95.18% of the company’s stock.

About Chegg

Chegg, Inc is an education technology company that provides digital learning tools and academic support services to students. Its platform offers assistance with homework and coursework, including step-by-step solutions, expert answers, practice materials, and subject-specific study resources.

The company’s products have included Chegg Study, Chegg Writing, and Mathway, a mathematics problem-solving application. Chegg has also offered language-learning services through Busuu and career-focused education and skills training through Chegg Skills.