Chegg (NYSE:CHGG) Stock Sees Heavy Call Option Buying

Key Points

• Chegg saw unusually heavy call-option activity, with traders purchasing 5,655 calls—about 129% above the typical volume of 2,472.
• Shares rose slightly to $0.72, while the company reported quarterly revenue of $51.85 million and an adjusted loss of $0.02 per share, beating analyst expectations.
• Analyst sentiment remains negative, with a consensus “Reduce” rating; an insider also sold 54,347 shares, despite institutional investors owning 95.18% of the stock.

Chegg, Inc. (NYSE:CHGG - Get Free Report) was the recipient of unusually large options trading on Monday. Stock traders acquired 5,655 call options on the company. This is an increase of approximately 129% compared to the typical volume of 2,472 call options.

Chegg Stock Performance

CHGG traded up $0.02 on Monday, hitting $0.72. 320,776 shares of the company were exchanged, compared to its average volume of 1,374,902. The stock's fifty day moving average is $0.75 and its 200-day moving average is $0.86. Chegg has a 12 month low of $0.45 and a 12 month high of $1.56. The company has a market cap of $79.94 million, a PE ratio of -1.47 and a beta of 2.16.

Chegg (NYSE:CHGG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported ($0.02) earnings per share for the quarter, beating analysts' consensus estimates of ($0.05) by $0.03. The firm had revenue of $51.85 million during the quarter, compared to the consensus estimate of $49.50 million. Chegg had a negative return on equity of 13.38% and a negative net margin of 19.96%.

Insider Buying and Selling at Chegg

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

Hedge Funds Weigh In On Chegg

Several hedge funds and other institutional investors have recently made changes to their positions in CHGG. Renaissance Technologies LLC raised its position in Chegg by 0.3% during the first quarter. Renaissance Technologies LLC now owns 3,346,800 shares of the technology company's stock worth $2,481,000 after acquiring an additional 10,820 shares in the last quarter. BlackRock Inc. bought a new position in shares of Chegg in the 2nd quarter valued at about $2,268,000. GSA Capital Partners LLP bought a new position in shares of Chegg in the 2nd quarter valued at about $836,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Chegg during the 2nd quarter worth about $809,000. Finally, Empowered Funds LLC acquired a new position in shares of Chegg during the 2nd quarter worth about $408,000. 95.18% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

CHGG has been the subject of several recent research reports. Zacks Research cut shares of Chegg from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Chegg in a research note on Friday, September 18th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce".

Chegg Company Profile

Chegg, Inc is an education technology company that provides digital learning tools and academic support services to students. Its platform offers study assistance, expert answers, practice materials, writing support, and other resources intended to help students understand course content and complete academic work.

The company's products have included Chegg Study, Chegg Writing, and Mathway, a mobile mathematics problem-solving service. Chegg has also offered language-learning services through Busuu, which it acquired in 2022.

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