Needham & Company LLC Initiates Coverage on Chegg (NYSE:CHGG)

Stock analysts at Needham & Company LLC began coverage on shares of Chegg (NYSE:CHGG) in a report issued on Wednesday, June 5th, MarketBeat Ratings reports. The firm set a “buy” rating and a $44.00 price target on the technology company’s stock. Needham & Company LLC’s price target would indicate a potential downside of 100.00% from the stock’s previous close.

Several other analysts have also recently commented on the stock. Citigroup cut shares of Chegg from a “buy” rating to a “neutral” rating and set a $36.00 price objective for the company. in a research note on Friday, February 8th. Craig Hallum lifted their price objective on shares of Chegg from $34.00 to $45.00 and gave the company a “buy” rating in a research note on Tuesday, February 12th. Lake Street Capital boosted their target price on shares of Chegg to $33.00 and gave the company a “hold” rating in a research note on Tuesday, February 12th. Barrington Research reiterated an “outperform” rating and issued a $44.00 target price (up from $32.00) on shares of Chegg in a research note on Tuesday, February 12th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Chegg to $42.00 and gave the company an “overweight” rating in a research note on Tuesday, February 12th. Five research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Chegg currently has an average rating of “Buy” and an average target price of $39.82.

Shares of NYSE:CHGG traded up $341,543,961.80 during trading hours on Wednesday, hitting $341,544,000.00. The company’s stock had a trading volume of 2,678,229 shares, compared to its average volume of 1,811,715. The firm has a market capitalization of $4.54 billion, a P/E ratio of 3,794,933,333.33, a price-to-earnings-growth ratio of 6.47 and a beta of 1.12. Chegg has a 52 week low of $22.67 and a 52 week high of $41.69. The company has a debt-to-equity ratio of 1.84, a current ratio of 13.96 and a quick ratio of 13.96. The company’s fifty day moving average is $37.75.

Chegg (NYSE:CHGG) last released its earnings results on Monday, April 29th. The technology company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.09). The company had revenue of $97.40 million for the quarter, compared to analysts’ expectations of $94.69 million. Chegg had a positive return on equity of 4.73% and a negative net margin of 4.86%. The firm’s revenue for the quarter was up 26.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.10 EPS. Equities research analysts forecast that Chegg will post 0.19 EPS for the current year.

In related news, CEO Daniel Rosensweig sold 150,000 shares of the company’s stock in a transaction dated Thursday, June 20th. The shares were sold at an average price of $39.85, for a total value of $5,977,500.00. Following the completion of the sale, the chief executive officer now owns 2,322,754 shares of the company’s stock, valued at $92,561,746.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Michael A. Osier sold 23,959 shares of the company’s stock in a transaction dated Thursday, April 4th. The shares were sold at an average price of $38.55, for a total transaction of $923,619.45. Following the completion of the sale, the insider now directly owns 574,177 shares of the company’s stock, valued at approximately $22,134,523.35. The disclosure for this sale can be found here. Insiders have sold 923,839 shares of company stock valued at $34,570,743 in the last ninety days. Insiders own 5.80% of the company’s stock.

Hedge funds have recently made changes to their positions in the business. Baillie Gifford & Co. lifted its position in shares of Chegg by 41.4% during the first quarter. Baillie Gifford & Co. now owns 11,636,625 shares of the technology company’s stock worth $443,588,000 after purchasing an additional 3,405,917 shares in the last quarter. Brown Advisory Inc. acquired a new stake in Chegg in the fourth quarter valued at approximately $47,869,000. Norges Bank acquired a new stake in Chegg in the fourth quarter valued at approximately $37,715,000. Zevenbergen Capital Investments LLC acquired a new stake in Chegg in the first quarter valued at approximately $36,210,000. Finally, Polar Capital LLP raised its holdings in Chegg by 509.3% in the fourth quarter. Polar Capital LLP now owns 921,787 shares of the technology company’s stock valued at $26,197,000 after acquiring an additional 770,489 shares in the last quarter.

Chegg Company Profile

Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.

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Analyst Recommendations for Chegg (NYSE:CHGG)

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