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

Chegg, Inc. (NYSE:CHGG) saw a significant increase in short interest in August. As of August 31st, there was short interest totalling 13,960,000 shares, an increase of 6.9% from the August 15th total of 13,060,000 shares. Approximately 14.2% of the company’s stock are sold short. Based on an average trading volume of 4,230,000 shares, the short-interest ratio is currently 3.3 days.

Chegg Price Performance

Shares of NYSE:CHGG opened at $1.83 on Tuesday. Chegg has a fifty-two week low of $1.78 and a fifty-two week high of $11.48. The company’s 50-day moving average is $2.54 and its 200 day moving average is $4.45. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.89 and a current ratio of 0.89. The company has a market capitalization of $187.06 million, a P/E ratio of -9.50, a price-to-earnings-growth ratio of 0.68 and a beta of 1.31.

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

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on CHGG. Craig Hallum dropped their price target on shares of Chegg from $7.00 to $3.00 and set a “hold” rating on the stock in a research report on Wednesday, August 7th. Piper Sandler cut their target price on Chegg from $6.00 to $2.00 and set an “underweight” rating on the stock in a research report on Tuesday, August 6th. Morgan Stanley lowered their price target on Chegg from $3.25 to $3.00 and set an “equal weight” rating for the company in a research report on Tuesday, August 6th. StockNews.com cut Chegg from a “buy” rating to a “hold” rating in a research note on Tuesday, August 6th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Chegg 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 company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $5.47.

Institutional Trading of Chegg

A number of large investors have recently bought and sold shares of the company. Gladius Capital Management LP purchased a new stake in Chegg in the 2nd quarter worth about $27,000. Allspring Global Investments Holdings LLC purchased a new position in shares of Chegg in the first quarter worth about $30,000. Adero Partners LLC bought a new stake in shares of Chegg in the second quarter valued at approximately $34,000. Vanguard Personalized Indexing Management LLC purchased a new stake in shares of Chegg during the 2nd quarter valued at approximately $60,000. Finally, Entropy Technologies LP purchased a new position in Chegg in the 1st quarter valued at approximately $90,000. 95.18% of the stock is 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.