Chegg (NYSE:CHGG) Stock Passes Below 200 Day Moving Average - What's Next?

Key Points

• Chegg shares fell below their 200‑day moving average, trading as low as $0.45 and last at $0.5502 versus a 200‑day MA of $1.01, signaling a bearish technical setup.
• Street sentiment is negative: two analysts rate Hold and two rate Sell, producing an average "Reduce" rating after recent downgrades (Weiss reaffirmed Sell; Zacks cut to Hold).
• Fundamentals remain weak despite a modest beat: Q4 revenue of $72.66M and EPS of ($0.01) topped estimates, but the company is still unprofitable (−27.44% net margin, negative ROE) with a market cap of about $60.1M.

Shares of Chegg, Inc. (NYSE:CHGG - Get Free Report) passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $1.01 and traded as low as $0.45. Chegg shares last traded at $0.5502, with a volume of 2,096,145 shares.

Wall Street Analyst Weigh In

A number of research firms have commented on CHGG. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Chegg in a research report on Monday, December 29th. Zacks Research lowered shares of Chegg from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 12th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Chegg in a report on Tuesday, February 10th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Chegg has an average rating of "Reduce".

Chegg Stock Down 2.9%

The firm's 50 day simple moving average is $0.69 and its two-hundred day simple moving average is $1.01. The stock has a market capitalization of $60.12 million, a P/E ratio of -0.57 and a beta of 1.99.

Chegg (NYSE:CHGG - Get Free Report) last released its quarterly earnings data on Monday, February 9th. The technology company reported ($0.01) earnings per share (EPS) 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 for the quarter, compared to analysts' expectations of $71.00 million. As a group, equities research analysts expect that Chegg, Inc. will post 0.15 earnings per share for the current year.

Institutional Investors Weigh In On Chegg

Several hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC grew its position in Chegg by 95.9% in the 1st quarter. AQR Capital Management LLC now owns 3,011,879 shares of the technology company's stock valued at $1,925,000 after purchasing an additional 1,474,640 shares during the period. Empowered Funds LLC lifted its stake in shares of Chegg by 8.5% in the first quarter. Empowered Funds LLC now owns 424,563 shares of the technology company's stock valued at $271,000 after buying an additional 33,269 shares in the last quarter. Strs Ohio bought a new position in shares of Chegg in the first quarter valued at $56,000. Savant Capital LLC acquired a new position in shares of Chegg during the second quarter valued at about $100,000. Finally, Catalyst Funds Management Pty Ltd acquired a new position in shares of Chegg during the second quarter valued at about $57,000. Institutional investors own 95.18% of the company's stock.

About Chegg

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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