Chegg (NYSE:CHGG) was downgraded by analysts at Jefferies Financial Group from a “buy” rating to a “hold” rating in a research report issued on Thursday, June 21st, MarketBeat reports. They currently have a $14.00 target price on the technology company’s stock, down from their previous target price of $27.00. Jefferies Financial Group’s target price would indicate a potential downside of 49.62% from the company’s previous close. The analysts noted that the move was a valuation call.
A number of other equities analysts have also recently commented on the company. Northland Securities upgraded Chegg to a “top pick” rating in a report on Tuesday, June 12th. ValuEngine upgraded Chegg from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, May 2nd. Zacks Investment Research lowered Chegg from a “hold” rating to a “sell” rating in a research report on Tuesday, May 1st. Citigroup lifted their price target on Chegg from $22.70 to $24.00 and gave the stock a “hold” rating in a research report on Monday, April 30th. Finally, Barrington Research reissued an “outperform” rating and issued a $25.00 target price on shares of Chegg in a report on Friday, April 27th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, three have issued a buy rating and two have given a strong buy rating to the company’s stock. Chegg has an average rating of “Hold” and an average price target of $21.40.
Shares of CHGG opened at $27.79 on Thursday. Chegg has a 52-week low of $11.93 and a 52-week high of $29.76. The firm has a market capitalization of $3.10 billion, a price-to-earnings ratio of -308.78, a P/E/G ratio of 19.03 and a beta of 1.48.
Chegg (NYSE:CHGG) last issued its quarterly earnings data on Thursday, April 26th. The technology company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.09 by $0.01. Chegg had a negative return on equity of 0.95% and a negative net margin of 6.12%. The firm had revenue of $76.95 million during the quarter, compared to the consensus estimate of $74.15 million. During the same period last year, the company earned $0.06 EPS. The company’s quarterly revenue was up 22.9% on a year-over-year basis. sell-side analysts anticipate that Chegg will post 0.06 earnings per share for the current fiscal year.
Chegg announced that its Board of Directors has initiated a stock buyback plan on Wednesday, March 28th that authorizes the company to repurchase $20.00 million in outstanding shares. This repurchase authorization authorizes the technology company to repurchase up to 0.9% of its stock through a private placement purchase. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.
In related news, insider Nathan J. Schultz sold 4,318 shares of the company’s stock in a transaction on Friday, May 18th. The stock was sold at an average price of $26.00, for a total value of $112,268.00. Following the completion of the transaction, the insider now directly owns 508,778 shares in the company, valued at $13,228,228. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Andrew J. Brown sold 200,000 shares of the company’s stock in a transaction on Thursday, May 10th. The shares were sold at an average price of $25.07, for a total value of $5,014,000.00. Following the completion of the transaction, the insider now owns 702,897 shares of the company’s stock, valued at $17,621,627.79. The disclosure for this sale can be found here. Insiders sold 1,108,601 shares of company stock worth $27,888,133 over the last 90 days. Company insiders own 10.80% of the company’s stock.
Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. grew its stake in shares of Chegg by 1.9% in the first quarter. BlackRock Inc. now owns 5,669,977 shares of the technology company’s stock valued at $117,142,000 after buying an additional 103,376 shares in the last quarter. Baillie Gifford & Co. grew its stake in shares of Chegg by 288.4% in the first quarter. Baillie Gifford & Co. now owns 4,212,854 shares of the technology company’s stock valued at $87,038,000 after buying an additional 3,128,153 shares in the last quarter. Alliancebernstein L.P. grew its stake in shares of Chegg by 14.0% in the fourth quarter. Alliancebernstein L.P. now owns 3,331,046 shares of the technology company’s stock valued at $54,363,000 after buying an additional 409,956 shares in the last quarter. TimesSquare Capital Management LLC grew its stake in shares of Chegg by 2.7% in the fourth quarter. TimesSquare Capital Management LLC now owns 3,106,385 shares of the technology company’s stock valued at $50,696,000 after buying an additional 80,480 shares in the last quarter. Finally, Fred Alger Management Inc. grew its stake in shares of Chegg by 15.0% in the fourth quarter. Fred Alger Management Inc. now owns 3,061,063 shares of the technology company’s stock valued at $49,957,000 after buying an additional 399,517 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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