Chegg (NYSE:CHGG) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Chegg (NYSE:CHGG) from a buy rating to a hold rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Chegg, Inc. provides a social education platform. The Company rents and sells print textbooks; and provides eTextbooks, supplemental materials, homework help, textbook buyback, courses, and college admissions and scholarship services, as well as offers enrollment marketing and brand advertising services. Chegg, Inc. is headquartered in Santa Clara, California. “

A number of other equities research analysts also recently weighed in on CHGG. Citigroup downgraded shares of Chegg from a buy rating to a neutral rating and lifted their price target for the company from $52.00 to $66.00 in a research report on Tuesday, June 30th. Morgan Stanley lifted their price target on shares of Chegg from $43.00 to $56.00 and gave the company an overweight rating in a research report on Tuesday, May 5th. BMO Capital Markets downgraded shares of Chegg from an outperform rating to a market perform rating and lifted their price target for the company from $54.00 to $67.00 in a research report on Monday, May 18th. Barrington Research restated an outperform rating and set a $60.00 price objective (up from $50.00) on shares of Chegg in a research report on Tuesday, May 5th. Finally, Raymond James upgraded shares of Chegg from a market perform rating to an outperform rating and set a $60.00 price objective for the company in a research report on Tuesday, May 5th. Five analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of Buy and a consensus price target of $60.75.

NYSE:CHGG opened at $75.02 on Tuesday. The company has a debt-to-equity ratio of 1.97, a quick ratio of 7.93 and a current ratio of 7.93. The stock’s 50-day simple moving average is $63.82 and its 200 day simple moving average is $46.89. The company has a market cap of $9.00 billion, a P/E ratio of -682.00, a P/E/G ratio of 3.86 and a beta of 1.08. Chegg has a 52-week low of $25.89 and a 52-week high of $75.24.

Chegg (NYSE:CHGG) last released its earnings results on Monday, May 4th. The technology company reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.20. Chegg had a positive return on equity of 12.53% and a negative net margin of 2.47%. The business had revenue of $131.60 million for the quarter, compared to the consensus estimate of $119.48 million. During the same quarter in the previous year, the business earned $0.15 earnings per share. Chegg’s quarterly revenue was up 35.1% on a year-over-year basis. As a group, equities analysts predict that Chegg will post 0.63 earnings per share for the current fiscal year.

In other Chegg news, CMO Esther Lem sold 21,548 shares of the business’s stock in a transaction on Monday, April 13th. The stock was sold at an average price of $37.03, for a total value of $797,922.44. Following the transaction, the chief marketing officer now owns 178,371 shares of the company’s stock, valued at $6,605,078.13. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Daniel Rosensweig sold 28,000 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $63.81, for a total value of $1,786,680.00. Following the completion of the transaction, the chief executive officer now directly owns 2,154,546 shares in the company, valued at approximately $137,481,580.26. The disclosure for this sale can be found here. Insiders have sold 322,074 shares of company stock valued at $20,294,477 in the last quarter. 3.10% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of the business. NEXT Financial Group Inc grew its stake in Chegg by 700.0% during the first quarter. NEXT Financial Group Inc now owns 800 shares of the technology company’s stock valued at $29,000 after acquiring an additional 700 shares in the last quarter. Canada Pension Plan Investment Board grew its stake in Chegg by 55.4% during the first quarter. Canada Pension Plan Investment Board now owns 881 shares of the technology company’s stock valued at $32,000 after acquiring an additional 314 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in Chegg during the second quarter valued at approximately $67,000. Harel Insurance Investments & Financial Services Ltd. purchased a new position in Chegg during the first quarter valued at approximately $54,000. Finally, Nisa Investment Advisors LLC grew its stake in Chegg by 108.5% during the first quarter. Nisa Investment Advisors LLC now owns 2,075 shares of the technology company’s stock valued at $74,000 after acquiring an additional 1,080 shares in the last quarter.

About Chegg

Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.

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