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

Key Points

• Chegg shares fell below their 200-day moving average of $0.93, trading as low as $0.7131 and last changing hands at $0.7460. The stock has a market capitalization of about $82.8 million.
• Analyst sentiment remains negative: Zacks Research downgraded Chegg to “hold,” Weiss Ratings reiterated “sell,” and the consensus rating is “reduce.”
• Chegg recently beat quarterly expectations, reporting a loss of $0.02 per share versus the anticipated $0.05 loss and revenue of $51.85 million, but it continues to post negative margins and return on equity.

Chegg, Inc. (NYSE:CHGG - Get Free Report)'s stock price crossed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $0.93 and traded as low as $0.7131. Chegg shares last traded at $0.7460, with a volume of 492,706 shares traded.

Analysts Set New Price Targets

A number of brokerages have commented on CHGG. Zacks Research cut Chegg from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Chegg in a research report on Friday. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Chegg currently has a consensus rating of "Reduce".

Chegg Stock Up 3.6%

The company has a market capitalization of $82.83 million, a PE ratio of -1.52 and a beta of 2.16. The company's 50 day moving average is $0.85 and its two-hundred day moving average is $0.93.

Chegg (NYSE:CHGG - Get Free Report) last announced its earnings results on Thursday, August 6th. The technology company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $51.85 million for the quarter, compared to analysts' expectations of $49.50 million. Analysts forecast that Chegg, Inc. will post -0.22 EPS for the current year.

Insider Transactions at Chegg

In other news, Director Renee Budig sold 54,347 shares of the 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 transaction, the director directly owned 376,311 shares in the company, valued at approximately $293,522.58. This trade represents a 12.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.00% of the stock is currently owned by insiders.

Institutional Trading of Chegg

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wealthfront Advisers LLC purchased a new stake in shares of Chegg during the second quarter worth about $63,000. Hsbc Holdings PLC purchased a new position in shares of Chegg during the 2nd quarter worth $68,000. Jefferies Financial Group Inc. purchased a new stake in shares of Chegg in the second quarter valued at about $78,000. Bank of America Corp DE grew its stake in shares of Chegg by 12.1% in the 1st quarter. Bank of America Corp DE now owns 119,544 shares of the technology company's stock valued at $89,000 after buying an additional 12,923 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in Chegg during the second quarter worth $228,000. Hedge funds and other institutional investors own 95.18% of the company's stock.

Chegg Company Profile

Chegg, Inc is an education technology company that provides digital learning tools and academic support services to students. Its platform offers assistance with homework and coursework, including step-by-step solutions, expert answers, practice materials, and subject-specific study resources.

The company's products have included Chegg Study, Chegg Writing, and Mathway, a mathematics problem-solving application. Chegg has also offered language-learning services through Busuu and career-focused education and skills training through Chegg Skills.

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