Chegg (NYSE:CHGG) Receives “Hold” Rating from Needham & Company LLC

Chegg (NYSE:CHGG)‘s stock had its “hold” rating reaffirmed by equities research analysts at Needham & Company LLC in a research note issued to investors on Tuesday,Benzinga reports.

A number of other research firms have also recently issued reports on CHGG. Zacks Research cut Chegg from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Chegg in a report on Monday, December 29th. Two research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Strong Sell” and a consensus price target of $1.00.

Chegg Stock Performance

NYSE CHGG opened at $0.76 on Tuesday. The stock has a market cap of $83.45 million, a price-to-earnings ratio of -1.06 and a beta of 1.98. The business has a 50 day simple moving average of $0.87 and a 200 day simple moving average of $1.14. Chegg has a 52-week low of $0.44 and a 52-week high of $1.90.

Chegg (NYSE:CHGG) last released its quarterly earnings results on Monday, February 9th. The technology company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.19) by $0.18. Chegg had a negative net margin of 17.14% and a negative return on equity of 9.41%. The company had revenue of $72.66 million during the quarter, compared to analysts’ expectations of $71.00 million. On average, analysts predict that Chegg will post 0.15 EPS for the current year.

Institutional Trading of Chegg

Hedge funds and other institutional investors have recently modified their holdings of the stock. Qube Research & Technologies Ltd bought a new stake in Chegg during the third quarter worth about $32,000. Ground Swell Capital LLC bought a new stake in shares of Chegg during the 2nd quarter worth approximately $27,000. Jump Financial LLC acquired a new stake in shares of Chegg in the 2nd quarter valued at approximately $31,000. Burford Brothers Inc. boosted its holdings in shares of Chegg by 86.2% in the 3rd quarter. Burford Brothers Inc. now owns 25,798 shares of the technology company’s stock valued at $39,000 after buying an additional 11,944 shares during the last quarter. Finally, Hudson Bay Capital Management LP bought a new position in shares of Chegg in the second quarter valued at $36,000. Institutional investors and hedge funds own 95.18% of the company’s stock.

Key Stories Impacting Chegg

Here are the key news stories impacting Chegg this week:

• Positive Sentiment: Q4 EPS came in better than street expectations (reported about ($0.01) vs. several estimates for a larger loss), which alleviated some near‑term earnings concerns. Article Title
• Positive Sentiment: Management is repositioning Chegg around a larger skilling market and has appointed Karine Allouche to lead Busuu language learning and skills integration in Europe — a strategic move that targets higher‑growth skilling revenue. Article Title
• Neutral Sentiment: Q4 revenue was approximately $72.7M, roughly in line with consensus (small beat vs. some estimates) but still reflects a major contraction versus the prior year. Article Title
• Negative Sentiment: Management set Q1 2026 revenue guidance at only $60.0M–$62.0M versus a consensus near $71.1M — a sizable beat‑down to near‑term top‑line expectations that drove the stock decline. Article Title
• Negative Sentiment: Balance‑sheet and cash flow metrics weakened: operating cash used and cash & equivalents declined materially (cash reported near $31M), raising short‑term liquidity concerns for a low‑market‑cap company. Article Title
• Negative Sentiment: Market reaction: shares sold off in extended trading after the report and guidance, reflecting investor concern about the revenue trajectory and near‑term cash profile. Article Title

Chegg Company Profile

Chegg, Inc (NYSE: CHGG) is a leading education technology company headquartered in Santa Clara, California. Originally founded in 2005, Chegg has evolved from a textbook rental service into a comprehensive digital learning platform. Its suite of subscription-based offerings addresses a wide range of academic needs, catering primarily to high school and college students seeking homework help, study resources, and career guidance.

The company’s core services include Chegg Study, which provides step-by-step solutions and expert Q&A support; Chegg Writing, offering plagiarism checks and guided writing assistance; and Chegg Math Solver, a tool for solving mathematical problems with detailed explanations.