Chegg (CHGG) Rating Increased to Buy at Zacks Investment Research

Chegg (NYSE:CHGG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm presently has a $31.00 price objective on the technology company’s stock. Zacks Investment Research‘s price target suggests a potential upside of 19.37% from the stock’s current price.

According to Zacks, “Chegg, Inc. provides a social education platform. The Company rents and sells print textbooks; and provides eTextbooks, supplemental materials, homework help, textbook buyback, courses, and college admissions and scholarship services, as well as offers enrollment marketing and brand advertising services. Chegg, Inc. is headquartered in Santa Clara, California. “

CHGG has been the subject of a number of other reports. Northland Securities upgraded shares of Chegg to a “top pick” rating in a research report on Tuesday, June 12th. Citigroup boosted their price objective on shares of Chegg from $23.50 to $27.00 and gave the company a “hold” rating in a research report on Tuesday, July 31st. Morgan Stanley boosted their price objective on shares of Chegg from $24.00 to $28.00 and gave the company a “hold” rating in a research report on Wednesday, August 1st. Lake Street Capital boosted their price objective on shares of Chegg from $20.00 to $26.00 and gave the company a “hold” rating in a research report on Tuesday, July 31st. Finally, Jefferies Financial Group downgraded shares of Chegg from a “buy” rating to a “hold” rating and lowered their price objective for the company from $27.00 to $14.00 in a research report on Thursday, June 21st. They noted that the move was a valuation call. Seven equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $24.20.



NYSE CHGG opened at $25.97 on Tuesday. The company has a debt-to-equity ratio of 0.71, a current ratio of 10.11 and a quick ratio of 10.11. Chegg has a 1-year low of $13.75 and a 1-year high of $32.82. The company has a market capitalization of $3.24 billion, a PE ratio of -288.56, a price-to-earnings-growth ratio of 14.36 and a beta of 1.51.

Chegg (NYSE:CHGG) last released its quarterly earnings results on Monday, July 30th. The technology company reported $0.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.08 by $0.04. Chegg had a negative net margin of 5.01% and a positive return on equity of 0.87%. The company had revenue of $74.22 million during the quarter, compared to the consensus estimate of $70.16 million. During the same period in the previous year, the business earned $0.06 earnings per share. The firm’s quarterly revenue was up 31.8% on a year-over-year basis. On average, sell-side analysts anticipate that Chegg will post 0.07 earnings per share for the current year.

In other Chegg news, CEO Daniel Rosensweig sold 150,000 shares of the business’s stock in a transaction on Monday, August 13th. The shares were sold at an average price of $29.28, for a total transaction of $4,392,000.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, General Counsel Dave Jr. Borders sold 15,000 shares of the business’s stock in a transaction on Monday, October 1st. The stock was sold at an average price of $28.31, for a total transaction of $424,650.00. Following the sale, the general counsel now directly owns 467,584 shares in the company, valued at approximately $13,237,303.04. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 415,000 shares of company stock valued at $12,342,150. Company insiders own 10.80% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the business. NewSquare Capital LLC bought a new stake in shares of Chegg during the second quarter worth $178,000. SG Americas Securities LLC bought a new stake in shares of Chegg during the first quarter worth $137,000. BB&T Securities LLC bought a new stake in shares of Chegg during the second quarter worth $209,000. Strs Ohio bought a new stake in shares of Chegg during the second quarter worth $241,000. Finally, HM Payson & Co. bought a new stake in shares of Chegg during the second quarter worth $245,000.

About Chegg

Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.

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