Chegg, Inc. (NYSE:CHGG) Sees Significant Drop in Short Interest

Chegg, Inc. (NYSE:CHGG) saw a large decline in short interest during the month of September. As of September 15th, there was short interest totalling 13,080,000 shares, a decline of 6.3% from the August 31st total of 13,960,000 shares. Based on an average daily volume of 3,910,000 shares, the days-to-cover ratio is currently 3.3 days. Currently, 13.3% of the shares of the stock are sold short.

Chegg Stock Performance

NYSE CHGG opened at $1.83 on Wednesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.89 and a quick ratio of 0.89. The company has a market cap of $186.55 million, a P/E ratio of -9.61, a P/E/G ratio of 0.58 and a beta of 1.31. The stock has a 50-day moving average of $2.26 and a two-hundred day moving average of $3.99. Chegg has a 1-year low of $1.63 and a 1-year high of $11.48.

Chegg (NYSE:CHGG) last announced its earnings results on Monday, August 5th. The technology company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.03. Chegg had a negative net margin of 91.74% and a positive return on equity of 2.10%. The firm had revenue of $163.10 million for the quarter, compared to the consensus estimate of $160.02 million. During the same period in the prior year, the firm earned $0.01 EPS. The firm’s revenue for the quarter was down 10.8% on a year-over-year basis. As a group, analysts anticipate that Chegg will post 0.19 EPS for the current year.

Hedge Funds Weigh In On Chegg

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Banco Santander S.A. raised its holdings in shares of Chegg by 3.8% in the 1st quarter. Banco Santander S.A. now owns 101,773 shares of the technology company’s stock valued at $770,000 after purchasing an additional 3,760 shares in the last quarter. Allspring Global Investments Holdings LLC acquired a new stake in Chegg in the first quarter valued at $30,000. Price T Rowe Associates Inc. MD boosted its position in shares of Chegg by 6.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 71,990 shares of the technology company’s stock worth $545,000 after acquiring an additional 4,250 shares in the last quarter. Quent Capital LLC raised its position in shares of Chegg by 35.0% during the 2nd quarter. Quent Capital LLC now owns 30,460 shares of the technology company’s stock worth $96,000 after acquiring an additional 7,892 shares in the last quarter. Finally, Gladius Capital Management LP acquired a new stake in Chegg during the second quarter worth approximately $27,000. Hedge funds and other institutional investors own 95.18% of the company’s stock.

Analyst Upgrades and Downgrades

CHGG has been the subject of a number of recent research reports. Northland Securities reduced their target price on shares of Chegg from $7.00 to $6.00 and set a “market perform” rating for the company in a research report on Tuesday, August 6th. Morgan Stanley cut their price objective on shares of Chegg from $3.25 to $3.00 and set an “equal weight” rating for the company in a report on Tuesday, August 6th. Craig Hallum lowered their target price on Chegg from $7.00 to $3.00 and set a “hold” rating on the stock in a report on Wednesday, August 7th. Piper Sandler cut their price target on Chegg from $6.00 to $2.00 and set an “underweight” rating for the company in a report on Tuesday, August 6th. Finally, StockNews.com lowered Chegg from a “buy” rating to a “hold” rating in a research note on Tuesday, August 6th. Three investment analysts have rated the stock with a sell rating and eight have given a hold rating to the stock. Based on data from MarketBeat, Chegg has an average rating of “Hold” and a consensus price target of $5.47.

About Chegg

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.