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Chegg (NYSE:CHGG) Downgraded by Zacks Investment Research to Sell

Tuesday, May 4, 2021 | MarketBeat

Chegg (NYSE:CHGG) was downgraded by Zacks Investment Research from a "hold" rating to a "sell" rating in a research note issued to investors on Tuesday, Zacks.com reports.

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. "

Several other brokerages also recently weighed in on CHGG. Craig Hallum lifted their target price on shares of Chegg from $105.00 to $125.00 and gave the company a "buy" rating in a report on Tuesday, February 9th. Morgan Stanley lifted their target price on shares of Chegg from $105.00 to $115.00 and gave the company an "overweight" rating in a report on Tuesday, February 9th. Raymond James lowered their target price on shares of Chegg from $120.00 to $100.00 and set an "outperform" rating on the stock in a report on Tuesday. BMO Capital Markets lifted their target price on shares of Chegg from $91.00 to $106.00 and gave the company a "market perform" rating in a report on Tuesday, February 9th. Finally, Northland Securities raised their price objective on shares of Chegg from $95.00 to $110.00 and gave the company an "outperform" rating in a research note on Tuesday, February 9th. Three analysts have rated the stock with a sell rating, three have issued a hold rating and twelve have assigned a buy rating to the company's stock. The stock has a consensus rating of "Buy" and a consensus target price of $104.22.

Chegg stock traded up $0.17 during midday trading on Tuesday, hitting $83.18. 5,323,309 shares of the company's stock were exchanged, compared to its average volume of 1,848,514. Chegg has a 12-month low of $53.00 and a 12-month high of $115.21. The company has a debt-to-equity ratio of 2.38, a quick ratio of 9.09 and a current ratio of 9.09. The stock has a market cap of $11.80 billion, a price-to-earnings ratio of -415.90, a price-to-earnings-growth ratio of 3.14 and a beta of 0.99. The firm's 50 day simple moving average is $90.07 and its 200 day simple moving average is $88.74.

Chegg (NYSE:CHGG) last issued its quarterly earnings data on Sunday, May 2nd. The technology company reported $0.28 earnings per share (EPS) for the quarter, missing the Thomson Reuters' consensus estimate of $0.30 by ($0.02). The business had revenue of $198.40 million for the quarter, compared to analysts' expectations of $184.59 million. Chegg had a positive return on equity of 13.35% and a negative net margin of 4.26%. The company's revenue for the quarter was up 50.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.22 earnings per share. On average, equities research analysts forecast that Chegg will post 0.69 EPS for the current fiscal year.

In other news, insider Nathan J. Schultz sold 30,000 shares of the business's stock in a transaction that occurred on Monday, April 26th. The shares were sold at an average price of $95.26, for a total value of $2,857,800.00. Following the completion of the transaction, the insider now owns 257,127 shares of the company's stock, valued at $24,493,918.02. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CMO Esther Lem sold 34,449 shares of the business's stock in a transaction that occurred on Monday, March 15th. The shares were sold at an average price of $89.34, for a total transaction of $3,077,673.66. Following the completion of the transaction, the chief marketing officer now directly owns 157,835 shares of the company's stock, valued at approximately $14,100,978.90. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 465,668 shares of company stock valued at $45,003,983. 3.10% of the stock is currently owned by company insiders.

Large investors have recently bought and sold shares of the company. KBC Group NV grew its holdings in Chegg by 5.8% in the first quarter. KBC Group NV now owns 88,056 shares of the technology company's stock valued at $7,543,000 after purchasing an additional 4,816 shares during the period. Essex Investment Management Co. LLC grew its holdings in Chegg by 2.0% in the fourth quarter. Essex Investment Management Co. LLC now owns 43,845 shares of the technology company's stock valued at $3,961,000 after purchasing an additional 845 shares during the period. IFP Advisors Inc grew its holdings in Chegg by 18.1% in the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the technology company's stock valued at $202,000 after purchasing an additional 330 shares during the period. Hsbc Holdings PLC grew its holdings in Chegg by 956.1% in the fourth quarter. Hsbc Holdings PLC now owns 124,743 shares of the technology company's stock valued at $11,347,000 after purchasing an additional 112,931 shares during the period. Finally, DE Burlo Group Inc. grew its holdings in Chegg by 16.0% in the fourth quarter. DE Burlo Group Inc. now owns 65,100 shares of the technology company's stock valued at $5,880,000 after purchasing an additional 9,000 shares during the period. 98.48% of the stock is owned by institutional investors and hedge funds.

About Chegg

Chegg, Inc engages in the operations of learning platform for students. It intends to empower students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades and test scores. The firm offers required and non-required scholastic materials including textbooks in any format, access to online homework help and textbook solutions, course organization and scheduling, college and university matching tools and scholarship connections.

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