Chegg (NYSE:CHGG) Downgraded to Sell at ValuEngine

ValuEngine lowered shares of Chegg (NYSE:CHGG) from a hold rating to a sell rating in a research report sent to investors on Friday morning, ValuEngine reports.

A number of other brokerages have also recently weighed in on CHGG. Needham & Company LLC reaffirmed a buy rating and issued a $50.00 price objective (up from $44.00) on shares of Chegg in a research note on Tuesday, July 30th. JPMorgan Chase & Co. lifted their price objective on Chegg from $43.00 to $49.00 and gave the company an overweight rating in a research note on Tuesday, July 30th. Craig Hallum lifted their price objective on Chegg from $50.00 to $55.00 and gave the company a buy rating in a research note on Tuesday, July 30th. BMO Capital Markets dropped their price objective on Chegg from $49.00 to $35.00 and set an outperform rating for the company in a research note on Friday, October 4th. Finally, Zacks Investment Research raised Chegg from a hold rating to a buy rating and set a $33.00 price objective for the company in a research note on Tuesday, November 5th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and eleven have assigned a buy rating to the stock. Chegg presently has a consensus rating of Buy and a consensus price target of $43.79.

NYSE:CHGG traded up $0.20 on Friday, reaching $34.05. The company’s stock had a trading volume of 954,932 shares, compared to its average volume of 1,825,902. Chegg has a 12-month low of $23.21 and a 12-month high of $48.22. The company has a quick ratio of 13.22, a current ratio of 9.50 and a debt-to-equity ratio of 1.89. The firm has a market cap of $4.10 billion, a price-to-earnings ratio of 378.33, a price-to-earnings-growth ratio of 5.04 and a beta of 0.95. The stock has a 50 day moving average price of $31.75 and a 200 day moving average price of $37.48.

Chegg (NYSE:CHGG) last posted its earnings results on Monday, November 4th. The technology company reported $0.18 EPS for the quarter, beating the Zacks’ consensus estimate of $0.08 by $0.10. Chegg had a positive return on equity of 9.53% and a negative net margin of 3.27%. The company had revenue of $94.20 million for the quarter, compared to the consensus estimate of $89.04 million. During the same quarter in the previous year, the business earned $0.07 earnings per share. The company’s revenue for the quarter was up 27.0% on a year-over-year basis. Equities research analysts expect that Chegg will post 0.34 EPS for the current fiscal year.

In related news, CEO Daniel Rosensweig sold 150,000 shares of the business’s stock in a transaction on Tuesday, August 20th. The stock was sold at an average price of $40.69, for a total transaction of $6,103,500.00. Following the completion of the transaction, the chief executive officer now directly owns 2,322,754 shares of the company’s stock, valued at approximately $94,512,860.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Marne L. Levine sold 4,375 shares of the business’s stock in a transaction on Thursday, October 17th. The stock was sold at an average price of $32.54, for a total value of $142,362.50. Following the transaction, the director now directly owns 9,696 shares of the company’s stock, valued at $315,507.84. The disclosure for this sale can be found here. Insiders sold 687,266 shares of company stock valued at $24,549,233 over the last ninety days. Insiders own 5.80% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CHGG. Bank of America Corp DE grew its stake in Chegg by 223.4% during the 2nd quarter. Bank of America Corp DE now owns 2,812,398 shares of the technology company’s stock worth $108,530,000 after purchasing an additional 1,942,695 shares in the last quarter. Eagle Asset Management Inc. acquired a new position in Chegg during the 3rd quarter worth $44,603,000. Carillon Tower Advisers Inc. acquired a new position in Chegg during the 3rd quarter worth $31,088,000. Baillie Gifford & Co. grew its stake in Chegg by 7.2% during the 2nd quarter. Baillie Gifford & Co. now owns 12,474,426 shares of the technology company’s stock worth $481,388,000 after purchasing an additional 837,801 shares in the last quarter. Finally, Renaissance Technologies LLC grew its stake in Chegg by 216.1% during the 2nd quarter. Renaissance Technologies LLC now owns 1,129,600 shares of the technology company’s stock worth $43,591,000 after purchasing an additional 772,200 shares in the last quarter.

Chegg Company Profile

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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Analyst Recommendations for Chegg (NYSE:CHGG)

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