Chegg (NYSE:CHGG) Share Price Passes Above 50-Day Moving Average - Here's Why

Key Points

• Shares climbed above the 50-day moving average, trading as high as $0.75 versus a 50-day MA of $0.65 and last at $0.7180 on volume of 387,533 shares.
• Analyst sentiment is negative with a MarketBeat consensus of "Reduce" (two Holds, one Sell) and recent downgrades from Zacks and Weiss Ratings.
• Mixed fundamentals: Chegg beat quarter estimates (EPS of $(0.01) vs. $(0.19) expected and revenue $72.66M vs. $71.0M) but remains unprofitable with a -27.44% net margin, negative ROE, a negative PE, and a market cap of about $78.5M; institutional ownership is very high (~95%).

Chegg, Inc. (NYSE:CHGG - Get Free Report) shares passed above its 50 day moving average during trading on Tuesday . The stock has a 50 day moving average of $0.65 and traded as high as $0.75. Chegg shares last traded at $0.7180, with a volume of 387,533 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CHGG shares. Zacks Research cut Chegg from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 12th. Weiss Ratings reissued a "sell (e+)" rating on shares of Chegg in a research report on Friday, March 27th. Finally, Needham & Company LLC reissued a "hold" rating on shares of Chegg in a research report on Tuesday, February 10th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Chegg has a consensus rating of "Reduce".

Chegg Trading Down 4.4%

The company has a market capitalization of $78.46 million, a PE ratio of -0.75 and a beta of 1.86. The business's fifty day moving average is $0.65 and its two-hundred day moving average is $0.93.

Chegg (NYSE:CHGG - Get Free Report) last announced its quarterly earnings data on Monday, February 9th. The technology company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.19) by $0.18. Chegg had a negative net margin of 27.44% and a negative return on equity of 18.30%. The company had revenue of $72.66 million during the quarter, compared to analyst estimates of $71.00 million. As a group, equities research analysts anticipate that Chegg, Inc. will post 0.15 EPS for the current year.

Hedge Funds Weigh In On Chegg

A number of hedge funds have recently added to or reduced their stakes in the company. Jefferies Financial Group Inc. raised its holdings in Chegg by 14.2% in the 3rd quarter. Jefferies Financial Group Inc. now owns 88,269 shares of the technology company's stock worth $133,000 after acquiring an additional 11,000 shares during the last quarter. Burford Brothers Inc. raised its holdings in Chegg by 86.2% in the 3rd quarter. Burford Brothers Inc. now owns 25,798 shares of the technology company's stock worth $39,000 after acquiring an additional 11,944 shares during the last quarter. Cerity Partners LLC raised its stake in Chegg by 38.4% during the 2nd quarter. Cerity Partners LLC now owns 62,579 shares of the technology company's stock valued at $76,000 after buying an additional 17,371 shares during the last quarter. Qube Research & Technologies Ltd purchased a new stake in Chegg during the 3rd quarter valued at $32,000. Finally, Federated Hermes Inc. raised its stake in Chegg by 53.8% during the 4th quarter. Federated Hermes Inc. now owns 65,395 shares of the technology company's stock valued at $61,000 after buying an additional 22,880 shares during the last quarter. 95.18% of the stock is currently owned by hedge funds and other institutional investors.

Chegg Company Profile

Chegg, Inc NYSE: CHGG is a leading education technology company headquartered in Santa Clara, California. Originally founded in 2005, Chegg has evolved from a textbook rental service into a comprehensive digital learning platform. Its suite of subscription-based offerings addresses a wide range of academic needs, catering primarily to high school and college students seeking homework help, study resources, and career guidance.

The company's core services include Chegg Study, which provides step-by-step solutions and expert Q&A support; Chegg Writing, offering plagiarism checks and guided writing assistance; and Chegg Math Solver, a tool for solving mathematical problems with detailed explanations.

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