Chegg (NYSE:CHGG) Earns “Buy” Rating from Barrington Research

Chegg (NYSE:CHGG)‘s stock had its “buy” rating reaffirmed by equities research analysts at Barrington Research in a note issued to investors on Wednesday, April 17th, AnalystRatings.com reports.

The analysts wrote, “Valuation/: As the company moves towards the bundling of its services (fall 2019), the deployment of text-based tutoring (2H/19) and international expansion (fall 2019), we believe Chegg has opportunities to increase its reach by moving more significantly into high school, which, in turn, will help attract a greater portion of incoming college freshmen to its services and by moving more into international markets (Canada, the U.K., Australia) over time. Chegg has risen nearly 35% YTD (after rising 74% in 2018) and is trading at 8.9x our 2020 revenue estimate, at a premium to its Ed Tech peers (5.3x) and a group of high-growth SaaS companies (7.1x). Nevertheless, we are reiterating our OUTPERFORM investment rating and 12-month price target of $44 on the basis of its sustainable, above-average revenue growth.””

Several other brokerages also recently commented on CHGG. Zacks Investment Research downgraded shares of Chegg from a “buy” rating to a “hold” rating in a research note on Tuesday, March 12th. Berenberg Bank assumed coverage on shares of Chegg in a research note on Wednesday, March 6th. They issued a “buy” rating and a $48.00 target price for the company. JPMorgan Chase & Co. upped 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. Citigroup downgraded shares of Chegg from a “buy” rating to a “neutral” rating and set a $36.00 price objective for the company. in a research report on Friday, February 8th. Finally, Lake Street Capital increased their price objective on shares of Chegg to $33.00 and gave the stock a “hold” rating in a research report on Tuesday, February 12th. Five research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company’s stock. Chegg currently has an average rating of “Buy” and a consensus target price of $39.40.

NYSE CHGG traded down $0.07 during trading hours on Wednesday, hitting $36.28. The company’s stock had a trading volume of 900,617 shares, compared to its average volume of 2,011,352. Chegg has a twelve month low of $22.67 and a twelve month high of $41.69. The firm has a market capitalization of $4.31 billion, a P/E ratio of 403.11, a P/E/G ratio of 7.66 and a beta of 1.22. The company has a debt-to-equity ratio of 1.84, a current ratio of 13.96 and a quick ratio of 13.96.

Chegg (NYSE:CHGG) last issued its earnings results on Monday, April 29th. The technology company reported $0.03 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.12 by ($0.09). Chegg had a negative net margin of 4.86% and a positive return on equity of 4.73%. The firm had revenue of $97.40 million during the quarter, compared to the consensus estimate of $94.69 million. During the same period in the previous year, the company posted $0.10 EPS. The firm’s revenue for the quarter was up 26.6% on a year-over-year basis. Sell-side analysts expect that Chegg will post 0.16 EPS for the current fiscal year.

In related news, CFO Andrew J. Brown sold 49,264 shares of the firm’s stock in a transaction on Saturday, February 23rd. The shares were sold at an average price of $38.92, for a total value of $1,917,354.88. Following the completion of the transaction, the chief financial officer now owns 198,947 shares of the company’s stock, valued at $7,743,017.24. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Michael A. Osier sold 4,264 shares of the firm’s stock in a transaction on Friday, April 26th. The shares were sold at an average price of $40.22, for a total transaction of $171,498.08. Following the completion of the transaction, the insider now directly owns 547,120 shares of the company’s stock, valued at approximately $22,005,166.40. The disclosure for this sale can be found here. Insiders have sold 1,063,774 shares of company stock valued at $40,890,836 in the last three months. 10.80% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC grew its position in Chegg by 22.8% in the fourth quarter. Parallel Advisors LLC now owns 1,558 shares of the technology company’s stock valued at $44,000 after purchasing an additional 289 shares in the last quarter. Stephens Inc. AR lifted its stake in Chegg by 1,027.2% in the first quarter. Stephens Inc. AR now owns 1,781 shares of the technology company’s stock valued at $68,000 after acquiring an additional 1,623 shares during the last quarter. Icon Wealth Partners LLC acquired a new stake in Chegg in the first quarter valued at $71,000. PRW Wealth Management LLC acquired a new stake in Chegg in the fourth quarter valued at $56,000. Finally, Quantamental Technologies LLC acquired a new stake in Chegg in the first quarter valued at $81,000. 98.48% of the stock is owned by institutional investors and hedge funds.

About Chegg

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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