Morgan Stanley Trims Chegg (NYSE:CHGG) Target Price to $7.00

Chegg (NYSE:CHGG) had its target price decreased by investment analysts at Morgan Stanley from $8.50 to $7.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has an “underweight” rating on the technology company’s stock. Morgan Stanley’s price target suggests a potential downside of 1.27% from the stock’s current price.

Several other brokerages also recently commented on CHGG. BMO Capital Markets dropped their price objective on Chegg from $11.00 to $10.00 and set a “market perform” rating on the stock in a research note on Tuesday, February 6th. StockNews.com raised shares of Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, January 23rd. The Goldman Sachs Group cut their price target on Chegg from $8.00 to $7.00 and set a “sell” rating for the company in a report on Tuesday, February 6th. Piper Sandler Companies cut Chegg to an “underweight” rating and lowered their price objective for the stock from $9.00 to $8.50 in a research report on Tuesday, February 6th. Finally, Piper Sandler downgraded Chegg from a “neutral” rating to an “underweight” rating and reduced their price target for the stock from $9.00 to $8.50 in a research report on Tuesday, February 6th. Four equities research analysts have rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat.com, Chegg currently has an average rating of “Hold” and an average target price of $10.00.

Chegg Stock Performance

Shares of CHGG traded up $0.06 during trading hours on Friday, reaching $7.09. 1,091,029 shares of the company traded hands, compared to its average volume of 2,666,847. The stock’s fifty day moving average is $8.02 and its 200 day moving average is $9.15. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.80 and a current ratio of 0.80. Chegg has a 1-year low of $6.63 and a 1-year high of $18.77. The stock has a market cap of $729.92 million, a P/E ratio of -44.38, a price-to-earnings-growth ratio of 1.34 and a beta of 1.26.

Chegg (NYSE:CHGG) last posted its earnings results on Monday, February 5th. The technology company reported $0.36 earnings per share for the quarter, hitting the consensus estimate 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 firm earned $0.16 EPS. The firm’s quarterly revenue was down 8.4% compared to the same quarter last year. Equities research analysts anticipate that Chegg will post 0.26 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in CHGG. Natixis Advisors L.P. raised its stake in shares of Chegg by 152.3% in the first quarter. Natixis Advisors L.P. now owns 33,910 shares of the technology company’s stock worth $1,230,000 after purchasing an additional 20,468 shares during the last quarter. MetLife Investment Management LLC bought a new stake in Chegg during the 1st quarter worth approximately $265,000. Lord Abbett & CO. LLC bought a new position in shares of Chegg in the first quarter worth approximately $12,124,000. Canada Pension Plan Investment Board lifted its stake in shares of Chegg by 280.3% during the 1st quarter. Canada Pension Plan Investment Board now owns 19,345 shares of the technology company’s stock valued at $702,000 after buying an additional 14,258 shares in the last quarter. Finally, Cetera Investment Advisers purchased a new position in shares of Chegg in the first quarter valued at about $275,000. 95.18% of the stock is currently owned by institutional investors.

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.