Chegg Target of Unusually Large Options Trading (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) was the target of some unusual options trading activity on Thursday. Traders bought 4,860 put options on the company. This is an increase of approximately 169% compared to the average volume of 1,806 put options.

Hedge Funds Weigh In On Chegg

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Acadian Asset Management LLC raised its stake in shares of Chegg by 185.5% in the third quarter. Acadian Asset Management LLC now owns 294,208 shares of the technology company’s stock worth $2,621,000 after purchasing an additional 191,165 shares during the last quarter. Trexquant Investment LP purchased a new stake in shares of Chegg in the 3rd quarter valued at $3,907,000. AQR Capital Management LLC increased its stake in shares of Chegg by 75.4% in the third quarter. AQR Capital Management LLC now owns 693,676 shares of the technology company’s stock worth $6,188,000 after acquiring an additional 298,194 shares during the period. Graham Capital Management L.P. raised its holdings in shares of Chegg by 28.2% during the third quarter. Graham Capital Management L.P. now owns 126,457 shares of the technology company’s stock worth $1,128,000 after purchasing an additional 27,813 shares during the last quarter. Finally, Hsbc Holdings PLC raised its holdings in shares of Chegg by 114.4% during the third quarter. Hsbc Holdings PLC now owns 262,562 shares of the technology company’s stock worth $2,347,000 after purchasing an additional 140,113 shares during the last quarter. Hedge funds and other institutional investors own 95.18% of the company’s stock.

Wall Street Analyst Weigh In

CHGG has been the topic of a number of recent research reports. StockNews.com upgraded shares of Chegg from a “hold” rating to a “buy” rating in a research note on Tuesday, January 23rd. JPMorgan Chase & Co. cut their price target on Chegg from $10.00 to $9.00 and set a “neutral” rating on the stock in a report on Tuesday, February 6th. Piper Sandler cut Chegg from a “neutral” rating to an “underweight” rating and decreased their price objective for the stock from $9.00 to $8.50 in a research note on Tuesday, February 6th. The Goldman Sachs Group dropped their price objective on Chegg from $8.00 to $7.00 and set a “sell” rating on the stock in a research report on Tuesday, February 6th. Finally, BMO Capital Markets reduced their target price on shares of Chegg from $11.00 to $10.00 and set a “market perform” rating for the company in a report on Tuesday, February 6th. Four research analysts have rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $10.22.

Chegg Stock Up 4.2 %

Shares of CHGG traded up $0.29 during mid-day trading on Thursday, hitting $7.19. 605,176 shares of the company traded hands, compared to its average volume of 2,667,998. The business has a 50 day moving average of $8.05 and a 200 day moving average of $9.16. The company has a market capitalization of $740.21 million, a PE ratio of -43.69, a price-to-earnings-growth ratio of 1.32 and a beta of 1.26. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.26. Chegg has a 1-year low of $6.63 and a 1-year high of $18.77.

Chegg (NYSE:CHGG) last issued its quarterly earnings results on Monday, February 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.36. Chegg had a net margin of 2.54% and a return on equity of 1.27%. The business had revenue of $187.99 million for the quarter, compared to analyst estimates of $185.94 million. During the same quarter in the prior year, the business posted $0.16 EPS. Chegg’s revenue for the quarter was down 8.4% compared to the same quarter last year. Equities research analysts anticipate that Chegg will post 0.26 EPS for the current year.

Chegg Company Profile

Chegg, Inc operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside.