Chegg, Inc. (NYSE:CHGG) Sees Large Increase in Short Interest

Chegg, Inc. (NYSE:CHGG) was the recipient of a large increase in short interest during the month of January. As of January 15th, there was short interest totalling 9,940,000 shares, an increase of 6.5% from the December 31st total of 9,330,000 shares. Based on an average daily volume of 3,930,000 shares, the days-to-cover ratio is presently 2.5 days. Currently, 10.1% of the company’s shares are sold short.

Chegg Price Performance

CHGG opened at $1.46 on Tuesday. Chegg has a 12-month low of $1.34 and a 12-month high of $9.75. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 1.31. The business’s fifty day simple moving average is $1.85 and its 200-day simple moving average is $1.97. The company has a market capitalization of $151.77 million, a price-to-earnings ratio of -0.18 and a beta of 1.41.

Chegg (NYSE:CHGG) last issued its quarterly earnings data on Tuesday, November 12th. The technology company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. The firm had revenue of $136.59 million during the quarter, compared to analysts’ expectations of $134.12 million. Chegg had a positive return on equity of 2.36% and a negative net margin of 124.05%. The firm’s quarterly revenue was down 13.5% on a year-over-year basis. During the same period in the prior year, the business posted ($0.07) EPS. On average, equities research analysts anticipate that Chegg will post 0.12 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Piper Sandler cut their target price on Chegg from $2.00 to $1.50 and set an “underweight” rating on the stock in a research report on Thursday, November 14th. Craig Hallum cut their target price on Chegg from $3.00 to $1.50 and set a “hold” rating on the stock in a research report on Wednesday, November 13th. The Goldman Sachs Group cut their price objective on Chegg from $3.75 to $1.75 and set a “neutral” rating on the stock in a research report on Thursday, November 14th. Morgan Stanley reaffirmed an “underweight” rating and issued a $1.25 price objective (down previously from $2.00) on shares of Chegg in a research report on Tuesday, January 14th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Chegg in a research report on Thursday, January 16th. Four equities research analysts have rated the stock with a sell rating and seven have issued a hold rating to the company. According to data from MarketBeat, Chegg has an average rating of “Hold” and a consensus target price of $4.50.

Institutional Investors Weigh In On Chegg

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CHGG. Dimensional Fund Advisors LP raised its stake in Chegg by 10.4% in the second quarter. Dimensional Fund Advisors LP now owns 4,585,055 shares of the technology company’s stock valued at $14,488,000 after buying an additional 433,709 shares during the last quarter. Sei Investments Co. raised its stake in Chegg by 761.1% in the second quarter. Sei Investments Co. now owns 88,448 shares of the technology company’s stock valued at $279,000 after buying an additional 78,177 shares during the last quarter. Millennium Management LLC raised its stake in Chegg by 158.4% in the second quarter. Millennium Management LLC now owns 2,221,344 shares of the technology company’s stock valued at $7,019,000 after buying an additional 1,361,710 shares during the last quarter. SG Americas Securities LLC raised its stake in Chegg by 242.5% in the third quarter. SG Americas Securities LLC now owns 106,993 shares of the technology company’s stock valued at $189,000 after buying an additional 75,751 shares during the last quarter. Finally, Quent Capital LLC raised its stake in Chegg by 98.5% in the third quarter. Quent Capital LLC now owns 60,460 shares of the technology company’s stock valued at $107,000 after buying an additional 30,000 shares during the last quarter. 95.18% of the stock is currently owned by hedge funds and other 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.