Morgan Stanley Reiterates “Underweight” Rating for Chegg (NYSE:CHGG)

Chegg (NYSE:CHGG)‘s stock had its “underweight” rating restated by equities research analysts at Morgan Stanley in a report issued on Tuesday, MarketBeat.com reports. They currently have a $1.25 target price on the technology company’s stock, down from their previous target price of $2.00. Morgan Stanley’s price objective would indicate a potential downside of 18.83% from the stock’s previous close.

CHGG has been the topic of several other research reports. Piper Sandler decreased 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 lowered their price objective 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 reduced their target price on shares of Chegg from $3.75 to $1.75 and set a “neutral” rating for the company in a research report on Thursday, November 14th. Northland Securities lowered their price target on shares of Chegg from $4.00 to $3.00 and set a “market perform” rating on the stock in a research report on Wednesday, November 13th. Finally, Needham & Company LLC reissued a “hold” rating on shares of Chegg in a report on Wednesday, November 13th. Four investment analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $4.50.

Chegg Price Performance

NYSE:CHGG opened at $1.54 on Tuesday. Chegg has a one year low of $1.34 and a one year high of $11.25. The company has a market cap of $160.63 million, a P/E ratio of -0.19 and a beta of 1.40. The firm’s fifty day moving average price is $1.92 and its two-hundred day moving average price is $2.11. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.91 and a quick ratio of 0.91.

Chegg (NYSE:CHGG) last posted its earnings results on Tuesday, November 12th. The technology company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. Chegg had a negative net margin of 124.05% and a positive return on equity of 2.36%. The company had revenue of $136.59 million during the quarter, compared to analysts’ expectations of $134.12 million. During the same quarter last year, the company posted ($0.07) EPS. Chegg’s quarterly revenue was down 13.5% compared to the same quarter last year. Equities analysts expect that Chegg will post 0.12 earnings per share for the current year.

Institutional Trading of Chegg

Institutional investors and hedge funds have recently made changes to their positions in the company. Pallas Capital Advisors LLC raised its position in Chegg by 60.5% during the fourth quarter. Pallas Capital Advisors LLC now owns 17,659 shares of the technology company’s stock valued at $28,000 after purchasing an additional 6,658 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. raised its holdings in shares of Chegg by 272.2% during the 3rd quarter. Point72 Asia Singapore Pte. Ltd. now owns 25,051 shares of the technology company’s stock worth $44,000 after buying an additional 18,320 shares in the last quarter. Intech Investment Management LLC bought a new stake in shares of Chegg during the 3rd quarter worth $56,000. Vanguard Personalized Indexing Management LLC acquired a new stake in Chegg in the second quarter valued at about $60,000. Finally, Aspire Wealth Management Corp acquired a new stake in Chegg in the third quarter valued at about $69,000. Institutional investors own 95.18% of the company’s stock.

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.