As of Thursday close, Chegg Inc.’s (NYSE:CHGG) stock was down -$0.48, moving down -5.08 percent to $8.97. The average number of shares traded per day over the past five days has been 1,787,760 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.05 fall in that time frame. In the last twenty days, the average volume was 1,753,540, while in the previous 50 days, it was 2,709,802.
Since last month, CHGG stock retreated -7.91%. Shares of the company fell to $8.96 on 09/21/23, the lowest level in the past month. A 52-week high of $30.05 was reached on 01/05/23 after having rallying from a 52-week low of $8.55. Since the beginning of this year, CHGG’s stock price has dropped by -64.50% or -$16.30, and marked a new high 3 times. However, the stock has declined by -70.15% since its 52-week high.
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CHGG stock investors should be aware that Chegg Inc. (CHGG) stock had its last reported insider trading activity 9 days ago on Sep 13. Schultz Nathan J., the CHIEF OPERATING OFFICER of the company, disposed of 1,547 shares for $10.06 on Sep 13. It resulted in a $15,563 divestment by the insider. Schultz Nathan J. sold 818 shares at an average price of $10.60 on Sep 05. The insider now owns 434,816 shares following the transaction. On Jun 14, CHIEF OPERATING OFFICER Schultz Nathan J. sold 1,751 shares at $10.75 apiece. The transaction was valued at $18,823.
Valuation Metrics
Right now, Chegg Inc. (CHGG) has a P/E ratio of about 4.66. The stock’s beta is 1.12. Besides these, the trailing price-to-sales (P/S) ratio of 1.43, the price-to-book (PB) ratio of 1.02, and the price-to-cash flow ratio of 6.28 may also be considered.
Financial Health
In the three months ended June 29, Chegg Inc.’s quick ratio stood at 3.10, while its current ratio was 3.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.74, and the total debt-to-equity ratio was 0.74. On the profitability front, the trailing twelve-month gross margin is 73.90% percent. In the year ended June 29, EBITDA margin amounted to 13.87%, whereas operating margins totaled 16.30%. Based on annual data, CHGG earned $569.5 million in gross profit and brought in $766.9 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 11.50%. Return on equity (ROE) for the past 12 months was 26.70%.
In Chegg Inc.’s quarter-end financial report for June 29, it reported total debt of $767.04 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CHGG’s revenue fell -6.73% to $187.6 million during the quarter, while net income inched up to $182.44 million. While analysts expected Chegg Inc. to report $0.29 quarterly earnings, the actual figure was $0.28 per share, beating the consensus estimate by -3.40%. During the quarter, the company generated $8.72 million in EBITDA. The liabilities of Chegg Inc. were 933.53 million at the end of its most recent quarter ended June 29, and its total debt was $788.3 million. The value of shareholders’ equity is $115.32 million.
Technical Picture
This quick technical analysis looks at Chegg Inc.’s (CHGG) price momentum. With a historical volatility rate of 30.68%, the RSI 9-day stood at 24.87% on 21 September.
With respect to its five-day moving average, the current Chegg Inc. price is down by -10.48% percent or -$1.05. At present, CHGG shares trade -9.39% below its 20-day simple moving average and -50.11% percent below its 100-day simple moving average. However, the stock is currently trading approximately -4.47% below its SMA50 and -69.79% below its SMA200.
Stochastic coefficient K was 7.05% and Stochastic coefficient D was 7.44%, while ATR was 0.35. Given the Stochastic reading of 0.55% for the 14-day period, the RSI (14) reading has been calculated as 33.70%. As of today, the MACD Oscillator reading stands at -0.46, while the 14-day reading stands at -0.66.
Analyst Ratings
Chegg Inc. downgraded its rating on Chegg Inc. (NYSE: CHGG) to a Hold in a note to investors on May 02, 2023. The analysts firm previously had a Buy rating on the stock.
With a median target price of $13.00, the current consensus forecast for the stock is $10.00 – $18.00. Based on these forecasts, analysts predict Chegg Inc. (CHGG) will achieve an average price target of $13.25.
