Chegg (CHGG) Raised to “Buy” at Zacks Investment Research

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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 brokerage presently has a $31.00 target price on the technology company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 19.37% from the company’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 topic of several other research reports. Barrington Research reissued a “buy” rating and issued a $32.00 price objective on shares of Chegg in a research note on Friday, October 5th. Northland Securities raised shares of Chegg to a “top pick” rating in a research report on Tuesday, June 12th. Craig Hallum raised shares of Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, October 2nd. Jefferies Financial Group cut shares of Chegg from a “buy” rating to a “hold” rating and cut their price target 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. Finally, Lake Street Capital upped their price target 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. Seven investment analysts have rated the stock with a hold rating, five have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $24.20.

Shares of Chegg stock opened at $25.97 on Tuesday. The company has a current ratio of 10.11, a quick ratio of 10.11 and a debt-to-equity ratio of 0.71. Chegg has a twelve month low of $13.75 and a twelve month high of $32.82. The firm has a market capitalization of $3.24 billion, a P/E ratio of -288.56, a price-to-earnings-growth ratio of 14.36 and a beta of 1.51.

Chegg (NYSE:CHGG) last issued its quarterly earnings data on Monday, July 30th. The technology company reported $0.12 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $70.16 million. During the same quarter in the previous year, the firm posted $0.06 earnings per share. Chegg’s revenue for the quarter was up 31.8% on a year-over-year basis. As a group, sell-side analysts predict that Chegg will post 0.07 earnings per share for the current fiscal year.

In other news, Director John E. York sold 25,000 shares of the company’s stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $29.10, for a total transaction of $727,500.00. Following the transaction, the director now owns 33,214 shares in the company, valued at $966,527.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Daniel Rosensweig sold 150,000 shares of the company’s stock in a transaction dated Monday, August 13th. The shares were sold at an average price of $29.28, for a total transaction of $4,392,000.00. The disclosure for this sale can be found here. Insiders have sold 415,000 shares of company stock worth $12,342,150 in the last ninety days. Insiders own 10.80% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in CHGG. SG Americas Securities LLC acquired a new position in shares of Chegg during the first quarter valued at about $137,000. Schwab Charles Investment Management Inc. raised its holdings in shares of Chegg by 4.0% during the first quarter. Schwab Charles Investment Management Inc. now owns 431,541 shares of the technology company’s stock valued at $8,916,000 after purchasing an additional 16,713 shares during the period. Northern Trust Corp raised its holdings in shares of Chegg by 1.3% during the first quarter. Northern Trust Corp now owns 1,138,027 shares of the technology company’s stock valued at $23,512,000 after purchasing an additional 14,199 shares during the period. BlackRock Inc. raised its holdings in shares of Chegg by 1.9% during the first quarter. BlackRock Inc. now owns 5,669,977 shares of the technology company’s stock valued at $117,142,000 after purchasing an additional 103,376 shares during the period. Finally, Bayesian Capital Management LP acquired a new position in shares of Chegg during the first quarter valued at about $721,000.

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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