The stock of Chegg Inc. (NYSE:CHGG) decreased by -$0.35 on Tuesday to finish at $9.80, down -3.45 percent. The last five days have seen an average of 3,346,780 shares of common stock traded. 3 times new highs were reached in the current year, with a fall of -$15.47. The average number of shares traded over the last 20 days was 3,722,820, while the average volume over the last 50 days totaled 3,279,750.
CHGG stock appreciated 7.46% since last month. On 07/17/23, the company’s shares reached a one-month low of $9.01. The stock touched a high of $30.05 on 01/05/23, after rallying from a low of $8.55 in 52 weeks. The price of CHGG stock has declined by -61.22% or -$15.47 this year, reaching a new high 3 times. Still, the stock price is down -67.39% from the 52-week high.
Insider Transactions
CHGG stock investors should be aware that Chegg Inc. (CHGG) stock had its last reported insider trading activity 63 days ago on Jun 14. On Jun 14, CHIEF OPERATING OFFICER Schultz Nathan J. sold 1,751 shares at $10.75 each. This transaction resulted in the insider making $18,823. On Jun 05, Schultz Nathan J. sold 818 shares at a price of US$9.56. After the transaction, the insider now owns 441,917 shares. Chief Operating Officer Schultz Nathan J. had earlier sold 7,007 shares on Mar 15 for $16.10 a share. The transaction was completed for $112,801.
Valuation Metrics
Chegg Inc. (CHGG) has a trailing price-to-earnings (P/E) ratio of 5.10. Beta for the stock is 1.12. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.55, the price-to-book (PB) ratio of 1.12, and the price-to-cash flow ratio of 6.81.
Financial Health
For the three months ended June 29, Chegg Inc.’s quick ratio was 3.10, while its current ratio was 3.10, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.74, and the total debt to equity ratio is 0.74. As far as profitability goes, gross margin for the trailing twelve months is 73.90% percent. Chegg Inc.’s EBITDA margin for the year ended June 29 was 13.87%, whereas its operating margin stood at 16.30% for the same period. Based on annual data, it had gross profit of $569.5 million and revenue of $766.9 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CHGG’s return on assets (ROA) during the last 12 months has been 12.20%. There was a 11.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 26.70%.
Earnings Surprise
According to Chegg Inc.’s quarterly financial report for the quarter that ended June 29, it had $767.04 million in total debt versus $209.69 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $182.44 million, while revenues fell by -6.73% to $187.6 million. It was predicted that Chegg Inc.’s quarterly earnings would be $0.28, but it ended up being $0.29, beating the consensus by -3.40%. EBITDA was $8.72 million for the quarter. At the end of Chegg Inc.’s most recent quarter ended June 29, its liabilities totaled 933.53 million, while its total debt was $788.3 million. Equity owned by shareholders amounts to $115.32 million.
Technical Picture
Here’s a quick look at Chegg Inc.’s (CHGG) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 42.80%, suggesting the stock is Neutral, with a 44.41% historical volatility rate.
The stochastic %K and %D were 8.14% and 14.11% respectively, while the average true range (ATR) was 0.59. Based on the 14-day stochastic reading of 0.30%, the RSI (14) reading is 47.03%. On the 9-day MACD Oscillator, the stock is at -0.18, and the 14-day reading is at -0.16.
Analyst Ratings
Chegg Inc. (NYSE: CHGG) was downgraded by Jefferies to a a Hold rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Chegg Inc. (CHGG) an Hold rating. CHGG is a stock that is recommended for selling by 0 brokerage firms, while 14 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 1 other recommend it as a buy.
What is CHGG’s price target for the next 12 months?
The current consensus forecast for the stock is between $11.00 and $18.00, with a median target price of $13.00. In analyzing these forecasts, the average price target given by analysts for Chegg Inc. (CHGG) is $13.35.
