Chegg Sees Unusually Large Options Volume (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) saw some unusual options trading on Monday. Stock traders acquired 9,955 call options on the stock. This represents an increase of 392% compared to the typical daily volume of 2,024 call options.

Hedge Funds Weigh In On Chegg

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Millennium Management LLC raised its position 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 valued at $7,019,000 after purchasing an additional 1,361,710 shares during the period. Dimensional Fund Advisors LP raised 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. XTX Topco Ltd lifted its position in shares of Chegg by 384.4% during the third quarter. XTX Topco Ltd now owns 394,152 shares of the technology company’s stock worth $698,000 after acquiring an additional 312,780 shares in the last quarter. Firsthand Capital Management Inc. boosted its holdings in shares of Chegg by 1,030.4% in the third quarter. Firsthand Capital Management Inc. now owns 260,000 shares of the technology company’s stock worth $460,000 after acquiring an additional 237,000 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Chegg by 14.9% in the third quarter. Charles Schwab Investment Management Inc. now owns 911,333 shares of the technology company’s stock valued at $1,613,000 after purchasing an additional 118,403 shares in the last quarter. Hedge funds and other institutional investors own 95.18% of the company’s stock.

Chegg Stock Down 5.5 %

CHGG stock traded down $0.09 during mid-day trading on Monday, reaching $1.46. 1,518,413 shares of the company traded hands, compared to its average volume of 2,648,372. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 1.31. The firm’s 50 day moving average price is $1.86 and its 200 day moving average price is $1.98. The stock has a market cap of $151.77 million, a price-to-earnings ratio of -0.18 and a beta of 1.41. Chegg has a fifty-two week low of $1.34 and a fifty-two week high of $9.75.

Chegg (NYSE:CHGG) last posted its earnings results on Tuesday, November 12th. The technology company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.03. Chegg had a negative net margin of 124.05% and a positive return on equity of 2.36%. The firm had revenue of $136.59 million during the quarter, compared to analyst estimates of $134.12 million. During the same quarter in the prior year, the business posted ($0.07) EPS. The business’s revenue was down 13.5% compared to the same quarter last year. As a group, equities research analysts predict that Chegg will post 0.12 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CHGG. Morgan Stanley reissued an “underweight” rating and issued a $1.25 price target (down previously from $2.00) on shares of Chegg in a report on Tuesday, January 14th. Northland Securities decreased their price target on shares of Chegg from $4.00 to $3.00 and set a “market perform” rating for the company in a report on Wednesday, November 13th. The Goldman Sachs Group dropped their target price on shares of Chegg from $3.75 to $1.75 and set a “neutral” rating on the stock in a report on Thursday, November 14th. Craig Hallum dropped their target price on Chegg from $3.00 to $1.50 and set a “hold” rating on the stock in a research report on Wednesday, November 13th. Finally, Needham & Company LLC restated a “hold” rating on shares of Chegg in a report on Thursday, January 16th. Four research analysts have rated the stock with a sell rating and seven have issued a hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $4.50.

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.