Chegg, Inc. (NYSE:CHGG) Short Interest Up 6.5% in January

Chegg, Inc. (NYSE:CHGG) saw a significant increase in short interest in 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. Currently, 10.1% of the company’s stock are short sold. Based on an average daily volume of 3,930,000 shares, the days-to-cover ratio is presently 2.5 days.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Pallas Capital Advisors LLC lifted 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. Caprock Group LLC purchased a new position in shares of Chegg during the fourth quarter valued at approximately $28,000. Ieq Capital LLC purchased a new stake in shares of Chegg in the fourth quarter valued at approximately $31,000. Point72 Asia Singapore Pte. Ltd. boosted its holdings in shares of Chegg by 272.2% in the third 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 period. Finally, Intech Investment Management LLC purchased a new stake in shares of Chegg in the third quarter valued at approximately $56,000. Institutional investors own 95.18% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on CHGG shares. The Goldman Sachs Group lowered their price target on Chegg from $3.75 to $1.75 and set a “neutral” rating on the stock in a research report on Thursday, November 14th. Northland Securities lowered their price target on Chegg from $4.00 to $3.00 and set a “market perform” rating on the stock in a research report on Wednesday, November 13th. Piper Sandler lowered their price target on Chegg from $2.00 to $1.50 and set an “underweight” rating on the stock in a research report on Thursday, November 14th. Morgan Stanley reaffirmed an “underweight” rating and set a $1.25 price target (down previously from $2.00) on shares of Chegg in a research report on Tuesday, January 14th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Chegg in a research note on Thursday, January 16th. Four investment analysts have rated the stock with a sell rating and seven have given a hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $4.50.

Chegg Price Performance

NYSE CHGG traded up $0.04 during trading hours on Tuesday, reaching $1.48. 390,037 shares of the stock traded hands, compared to its average volume of 2,567,163. The stock has a 50 day simple moving average of $1.85 and a two-hundred day simple moving average of $1.97. Chegg has a 1 year low of $1.34 and a 1 year high of $9.75. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.91 and a quick ratio of 0.91. The company has a market cap of $153.86 million, a price-to-earnings ratio of -0.18 and a beta of 1.41.

Chegg (NYSE:CHGG) last released its quarterly earnings data on Tuesday, November 12th. The technology company reported $0.09 EPS for the quarter, topping the consensus estimate 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 firm 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 quarterly revenue was down 13.5% on a year-over-year basis. On average, analysts predict that Chegg will post 0.12 EPS for the current fiscal year.

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.