Investors Purchase Large Volume of Chegg Call Options (NYSE:CHGG)

Key Points

• Unusually large call buying: Traders purchased 3,311 call options on CHGG on Wednesday, a 58% increase versus the stock’s typical daily call volume of 2,101.
• Big institutional accumulation: Several hedge funds materially increased positions (AQR up ~95.9% to 3.01M shares; Arrowstreet up ~158.9% to 3.76M shares), and institutions now own about 95.18% of the stock.
• Mixed fundamentals and sentiment: Chegg trades at $0.96 with a $105M market cap, reported a modest EPS beat last quarter (‑$0.01 vs. ‑$0.19 est) but remains unprofitable and carries an average analyst rating of "Reduce."

Chegg, Inc. (NYSE:CHGG - Get Free Report) was the target of unusually large options trading activity on Wednesday. Traders bought 3,311 call options on the stock. This represents an increase of 58% compared to the typical daily volume of 2,101 call options.

Institutional Investors Weigh In On Chegg

A number of hedge funds have recently added to or reduced their stakes in CHGG. AQR Capital Management LLC increased its holdings in Chegg by 95.9% in the first quarter. AQR Capital Management LLC now owns 3,011,879 shares of the technology company's stock worth $1,925,000 after purchasing an additional 1,474,640 shares in the last quarter. Empowered Funds LLC increased its holdings in Chegg by 8.5% in the first quarter. Empowered Funds LLC now owns 424,563 shares of the technology company's stock worth $271,000 after purchasing an additional 33,269 shares in the last quarter. Strs Ohio bought a new stake in Chegg in the first quarter worth approximately $56,000. Arrowstreet Capital Limited Partnership increased its holdings in Chegg by 158.9% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,756,917 shares of the technology company's stock worth $4,546,000 after purchasing an additional 2,305,872 shares in the last quarter. Finally, Jump Financial LLC bought a new stake in Chegg in the second quarter worth approximately $31,000. 95.18% of the stock is currently owned by institutional investors.

Chegg Price Performance

Shares of Chegg stock traded down $0.00 during midday trading on Wednesday, reaching $0.96. The company had a trading volume of 672,168 shares, compared to its average volume of 1,223,220. The stock has a fifty day moving average price of $0.66 and a 200 day moving average price of $0.90. The firm has a market cap of $105.34 million, a PE ratio of -1.01 and a beta of 1.86. Chegg has a fifty-two week low of $0.45 and a fifty-two week high of $1.90.

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

Analyst Ratings Changes

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

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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