Chegg (NYSE:CHGG) Share Price Passes Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Chegg shares fell below their 200-day moving average, trading as low as $0.8050 and last changing hands at $0.8198. The company has a market capitalization of about $91 million and a beta of 2.17.
• Analyst sentiment remains weak: two analysts rate Chegg “Hold” and one rates it “Sell,” producing a consensus “Reduce” rating. Analysts expect the company to post a loss of approximately $0.22 per share for the year.
• Chegg beat quarterly expectations with adjusted earnings of a $0.02-per-share loss versus the projected $0.05 loss, while revenue reached $51.85 million. However, the company remains unprofitable, and a director recently sold 54,347 shares under a pre-arranged trading plan.

Shares of Chegg, Inc. (NYSE:CHGG - Get Free Report) passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $0.91 and traded as low as $0.8050. Chegg shares last traded at $0.8198, with a volume of 617,254 shares.

Wall Street Analyst Weigh In

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

Chegg Price Performance

The firm's 50-day moving average is $0.91 and its 200 day moving average is $0.91. The stock has a market cap of $91.02 million, a price-to-earnings ratio of -1.67 and a beta of 2.17.

Chegg (NYSE:CHGG - Get Free Report) last announced 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 company had revenue of $51.85 million for the quarter, compared to analyst estimates of $49.50 million. Chegg had a negative net margin of 19.96% and a negative return on equity of 13.38%. On average, sell-side analysts forecast that Chegg, Inc. will post -0.22 EPS for the current year.

Insiders Place Their Bets

In other Chegg news, Director Renee Varni Budig sold 54,347 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $0.78, for a total transaction of $42,390.66. Following the completion of the sale, the director owned 376,311 shares of the company's stock, valued at approximately $293,522.58. The trade was a 12.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Chegg

A number of large investors have recently modified their holdings of the company. Charles Schwab Investment Management Inc. lifted its stake in shares of Chegg by 23.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,844,804 shares of the technology company's stock valued at $4,506,000 after purchasing an additional 907,080 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in Chegg by 4.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,923,979 shares of the technology company's stock worth $5,925,000 after purchasing an additional 167,062 shares in the last quarter. Renaissance Technologies LLC raised its holdings in Chegg by 0.3% in the first quarter. Renaissance Technologies LLC now owns 3,346,800 shares of the technology company's stock valued at $2,481,000 after buying an additional 10,820 shares during the period. AQR Capital Management LLC raised 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 valued at $1,925,000 after buying an additional 1,474,640 shares during the period. Finally, BlackRock Inc. acquired a new position in Chegg during the second quarter valued at approximately $2,268,000. 95.18% of the stock is currently owned by hedge funds and other institutional investors.

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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