Chegg (NYSE:CHGG) Stock Crosses Below 200 Day Moving Average – Should You Sell?

Shares of Chegg, Inc. (NYSE:CHGG) passed below its 200-day moving average during trading on Tuesday. The stock has a 200-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 trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Zacks Research lowered shares of Chegg from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Chegg in a research note on Friday, September 18th. 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, the stock currently has a consensus rating of “Reduce”.

Chegg Price Performance

The stock has a market cap of $80.72 million, a price-to-earnings ratio of -1.48 and a beta of 2.16. The firm has a fifty day moving average of $0.84 and a 200 day moving average of $0.93.

Chegg (NYSE:CHGG) last released its quarterly earnings data on Thursday, August 6th. The technology company reported ($0.02) earnings per share for the quarter, topping 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 return on equity of 13.38% and a negative net margin of 19.96%. Research analysts anticipate that Chegg, Inc. will post -0.22 earnings per share for the current fiscal year.

Insider Buying and Selling at Chegg

In other news, Director Renee Budig sold 54,347 shares of the business’s stock in a transaction dated 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 owned 376,311 shares of the company’s stock, valued at approximately $293,522.58. The trade was a 12.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.00% of the company’s stock.

Institutional Investors Weigh In On Chegg

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Wealthfront Advisers LLC acquired a new position in Chegg in the 2nd quarter valued at about $63,000. Hsbc Holdings PLC acquired a new stake in shares of Chegg during the 2nd quarter worth approximately $68,000. Jefferies Financial Group Inc. purchased a new stake in shares of Chegg during the 2nd quarter valued at approximately $78,000. Bank of America Corp DE raised its position in shares of Chegg by 12.1% during 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 position in Chegg in the second quarter valued at approximately $228,000. 95.18% of the stock is currently owned by institutional investors and hedge funds.

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.