BlackRock Inc. Acquires New Stake in Chegg, Inc. $CHGG

Key Points

• BlackRock acquired 2.25 million Chegg shares in the second quarter, valued at approximately $2.27 million and representing a 2.01% stake.
• Institutional investors and hedge funds collectively own 95.18% of Chegg, while several firms recently initiated or expanded positions.
• Chegg reported better-than-expected quarterly results, with an adjusted loss of $0.02 per share and revenue of $51.85 million, but analysts maintain a consensus “Reduce” rating; the stock recently traded near $0.85.

BlackRock Inc. bought a new position in Chegg, Inc. (NYSE:CHGG - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 2,246,032 shares of the technology company's stock, valued at approximately $2,268,000. BlackRock Inc. owned 2.01% of Chegg at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Qube Research & Technologies Ltd bought a new position in shares of Chegg during the third quarter worth about $32,000. Jump Financial LLC acquired a new position in Chegg during the 2nd quarter worth approximately $31,000. Hudson Bay Capital Management LP bought a new position in shares of Chegg during the 2nd quarter worth approximately $36,000. BNP Paribas Financial Markets grew its stake in shares of Chegg by 564.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 34,060 shares of the technology company's stock worth $51,000 after acquiring an additional 28,937 shares in the last quarter. Finally, Virtu Financial LLC acquired a new stake in shares of Chegg in the fourth quarter valued at approximately $49,000. Institutional investors and hedge funds own 95.18% of the company's stock.

Chegg Trading Down 13.1%

NYSE CHGG opened at $0.85 on Friday. The firm has a market capitalization of $94.42 million, a P/E ratio of -1.74 and a beta of 2.16. The firm's fifty day moving average price is $0.90 and its two-hundred day moving average price is $0.92. Chegg, Inc. has a 1 year low of $0.45 and a 1 year high of $1.90.

Chegg (NYSE:CHGG - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The technology company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.05) by $0.03. Chegg had a negative net margin of 19.96% and a negative return on equity of 13.38%. The company had revenue of $51.85 million during the quarter, compared to the consensus estimate of $49.50 million. On average, research analysts anticipate that Chegg, Inc. will post -0.22 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CHGG shares. Zacks Research lowered shares of Chegg from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Weiss Ratings raised shares of Chegg from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce".

Insider Transactions at Chegg

In other Chegg news, Director Renee Varni Budig sold 54,347 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $0.78, for a total value of $42,390.66. Following the sale, the director owned 376,311 shares in the company, valued at $293,522.58. This represents a 12.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.00% of the stock is owned by corporate insiders.

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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