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

Chegg, Inc. (NYSE:CHGG) was the recipient of a significant 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. Approximately 10.1% of the shares of the company are short sold. Based on an average daily volume of 3,930,000 shares, the days-to-cover ratio is presently 2.5 days.

Wall Street Analysts Forecast Growth

CHGG has been the subject of several research analyst reports. Piper Sandler reduced their price objective on Chegg from $2.00 to $1.50 and set an “underweight” rating for the company in a research note on Thursday, November 14th. Morgan Stanley reaffirmed an “underweight” rating and set a $1.25 target price (down from $2.00) on shares of Chegg in a report on Tuesday, January 14th. Northland Securities dropped their price objective on Chegg from $4.00 to $3.00 and set a “market perform” rating on the stock in a report on Wednesday, November 13th. Craig Hallum decreased 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. Finally, Needham & Company LLC restated a “hold” rating on shares of Chegg in a research report on Thursday, January 16th. Four analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $4.50.

Chegg Price Performance

NYSE:CHGG opened at $1.46 on Tuesday. Chegg has a 52 week low of $1.34 and a 52 week high of $9.75. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 1.31. The company has a market capitalization of $151.77 million, a P/E ratio of -0.18 and a beta of 1.41. The stock’s fifty day moving average is $1.85 and its two-hundred day moving average is $1.97.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CHGG. Pallas Capital Advisors LLC lifted its holdings in shares of Chegg by 60.5% in the 4th 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 during the last quarter. Caprock Group LLC purchased a new stake in shares of Chegg in the 4th quarter valued at about $28,000. Ieq Capital LLC purchased a new stake in shares of Chegg in the 4th quarter valued at about $31,000. Point72 Asia Singapore Pte. Ltd. lifted its holdings in shares of Chegg by 272.2% in the 3rd quarter. Point72 Asia Singapore Pte. Ltd. now owns 25,051 shares of the technology company’s stock valued at $44,000 after purchasing an additional 18,320 shares during the last quarter. Finally, Intech Investment Management LLC purchased a new stake in shares of Chegg in the 3rd quarter valued at about $56,000. 95.18% of the stock is owned by institutional investors and hedge funds.

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.