Short Interest in Chegg, Inc. (NYSE:CHGG) Grows By 5.2%

Chegg, Inc. (NYSE:CHGG) saw a significant increase in short interest in June. As of June 15th, there was short interest totalling 18,860,000 shares, an increase of 5.2% from the May 31st total of 17,930,000 shares. Approximately 19.4% of the shares of the stock are sold short. Based on an average daily volume of 3,800,000 shares, the days-to-cover ratio is currently 5.0 days.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Jefferies Financial Group cut shares of Chegg from a “hold” rating to an “underperform” rating and dropped their price objective for the stock from $7.00 to $4.00 in a research note on Tuesday, April 30th. Needham & Company LLC restated a “hold” rating on shares of Chegg in a report on Tuesday, June 18th. Piper Sandler reaffirmed an “underweight” rating and set a $6.00 target price (down from $8.50) on shares of Chegg in a research report on Tuesday, April 30th. Craig Hallum reiterated a “hold” rating and issued a $7.00 price target (down previously from $13.00) on shares of Chegg in a report on Tuesday, April 30th. Finally, Morgan Stanley reduced their price objective on Chegg from $8.50 to $7.00 and set an “underweight” rating on the stock in a report on Friday, April 19th. Five research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $7.31.

Chegg Stock Performance

Shares of NYSE:CHGG opened at $2.88 on Friday. The firm has a 50 day moving average of $3.93 and a 200 day moving average of $7.23. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $294.38 million, a price-to-earnings ratio of -15.16, a price-to-earnings-growth ratio of 0.53 and a beta of 1.35. Chegg has a 52 week low of $2.53 and a 52 week high of $13.11.

Chegg (NYSE:CHGG) last announced its quarterly earnings results on Monday, April 29th. The technology company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.03). The company had revenue of $174.35 million during the quarter, compared to analysts’ expectations of $174.05 million. Chegg had a net margin of 2.07% and a return on equity of 0.87%. On average, sell-side analysts predict that Chegg will post 0.27 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Chegg

A number of large investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC purchased a new stake in Chegg in the first quarter valued at about $30,000. Headlands Technologies LLC purchased a new stake in shares of Chegg during the fourth quarter valued at $48,000. Entropy Technologies LP purchased a new stake in shares of Chegg during the first quarter valued at $90,000. Quest Partners LLC acquired a new position in shares of Chegg in the 4th quarter valued at $114,000. Finally, Quadrature Capital Ltd purchased a new position in Chegg in the 1st quarter worth $155,000. 95.18% of the stock is currently owned by institutional investors.

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.