Chegg (NYSE:CHGG) Stock Crosses Below 200-Day Moving Average - Here's Why

Key Points

• Chegg shares fell below their 200-day moving average of $0.94, reaching $0.7020 before last trading at $0.7230. The company’s market capitalization stood at approximately $80.27 million.
• Analyst sentiment remains negative: Chegg was downgraded to “hold” by Zacks Research, while Weiss Ratings maintained a “sell” rating; MarketBeat’s consensus rating is “Reduce.”
• Chegg beat quarterly expectations with adjusted EPS of negative $0.02 versus the projected negative $0.05 and revenue of $51.85 million, but it still reported negative margins and return on equity. An insider also sold 54,347 shares under a pre-arranged trading plan.

Chegg, Inc. (NYSE:CHGG - Get Free Report)'s share price passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $0.94 and traded as low as $0.7020. Chegg shares last traded at $0.7230, with a volume of 488,900 shares trading hands.

Wall Street Analyst Weigh In

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

Chegg Trading Up 2.7%

The firm has a market capitalization of $80.27 million, a PE ratio of -1.48 and a beta of 2.16. The stock's 50 day moving average price is $0.83 and its two-hundred day moving average price is $0.94.

Chegg (NYSE:CHGG - Get Free Report) last issued its quarterly earnings data 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. The business had revenue of $51.85 million for 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%. Analysts expect that Chegg, Inc. will post -0.22 earnings per share for the current year.

Insider Transactions at Chegg

In other Chegg news, Director Renee Budig sold 54,347 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $0.78, for a total value of $42,390.66. Following the transaction, the director directly owned 376,311 shares in the company, valued at approximately $293,522.58. This represents a 12.62% decrease in their position. 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. Company insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Chegg

A number of institutional investors have recently modified their holdings of CHGG. Wealthfront Advisers LLC acquired a new stake in shares of Chegg during the second quarter worth $63,000. Hsbc Holdings PLC acquired a new position in Chegg in the second quarter valued at $68,000. Jefferies Financial Group Inc. acquired a new position in Chegg in the second quarter valued at $78,000. Bank of America Corp DE lifted its position in Chegg by 12.1% during the first quarter. Bank of America Corp DE now owns 119,544 shares of the technology company's stock worth $89,000 after buying an additional 12,923 shares during the period. Finally, Bank of New York Mellon Corp purchased a new position in Chegg during the second quarter worth about $228,000. 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 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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