Chegg (NYSE:CHGG) Shares Cross Below Two Hundred Day Moving Average - Here's Why

Key Points

• Chegg shares fell below their 200-day moving average, trading as low as $0.7231 versus the $0.94 average and last changing hands at $0.7330.
• Analyst sentiment remains weak: coverage averages a “Reduce” rating, with two Holds and one Sell; Weiss Ratings reaffirmed its “sell” rating.
• Chegg reported better-than-expected quarterly results, including an adjusted loss of $0.02 per share and $51.85 million in revenue, but remains unprofitable with a negative net margin and analysts expecting a full-year loss.

Chegg, Inc. (NYSE:CHGG - Get Free Report) crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $0.94 and traded as low as $0.7231. Chegg shares last traded at $0.7330, with a volume of 422,431 shares trading hands.

Wall Street Analyst Weigh In

CHGG has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Chegg in a research report on Friday, September 18th. Zacks Research cut Chegg from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Reduce".

Chegg Stock Performance

The firm has a market cap of $81.38 million, a PE ratio of -1.50 and a beta of 2.16. The stock has a fifty day moving average price of $0.77 and a 200-day moving average price of $0.94.

Chegg (NYSE:CHGG - Get Free Report) last posted its earnings results on Thursday, August 6th. The technology company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $49.50 million. As a group, equities analysts predict that Chegg, Inc. will post -0.22 earnings per share for the current fiscal year.

Insider Transactions at Chegg

In other news, Director Renee Budig sold 54,347 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $0.78, for a total value of $42,390.66. Following the completion of the sale, the director owned 376,311 shares of the company's stock, valued at $293,522.58. This represents 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 available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Chegg

Hedge funds and other institutional investors have recently made changes to their positions in the business. Renaissance Technologies LLC boosted its position in Chegg by 0.3% during the 1st quarter. Renaissance Technologies LLC now owns 3,346,800 shares of the technology company's stock worth $2,481,000 after purchasing an additional 10,820 shares during the period. BlackRock Inc. purchased a new position in Chegg in the second quarter valued at about $2,268,000. GSA Capital Partners LLP purchased a new position in Chegg in the second quarter valued at about $836,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Chegg during the second quarter worth about $809,000. Finally, Empowered Funds LLC acquired a new position in shares of Chegg during the second quarter worth about $408,000. Institutional investors and hedge funds own 95.18% of the company's stock.

Chegg Company Profile

Chegg, Inc is an education technology company that provides digital learning services and academic support tools for students. Its platform offers guided explanations, expert-assisted homework help, practice materials, and study resources across subjects including mathematics, science, business and the humanities.

The company's products have included Chegg Study, Chegg Writing and Chegg Math, as well as tools designed to help students improve their writing, solve problems and prepare for exams.

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