The Vanguard Group, Inc. recently announced the acquisition of new stake in Chegg Inc. (NYSE:CHGG). The institutional investor has increased its shareholding in the Consumer Defensive company by 5.07% to 12.01 million shares with purchase of 0.58 million shares. This fresh investment now brings its stake to 9.49% valued currently at $190.87 million. In addition, BlackRock Fund Advisors raised its holdings by 0.28 million to 7.51 million shares. And Sands Capital Management LLC has lifted its position by 1.35% or 72546.0 shares – to 5.45 million shares.
With over 2.17 million Chegg Inc. (CHGG) shares trading Monday and a closing price of $15.55 on the day, the dollar volume was approximately $33.79 million. The shares have shown a negative half year performance of -32.60% and its price on 03/13/23 lost nearly -2.14%. Currently, there are 125.73M common shares owned by the public and among those 122.77M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for CHGG have a consensus price objective of $20.09. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $17.00. The average price target is 23.7% above its recent price level and an upside to the estimated low will see the stock gain 8.53% over that period. But an upside of 37.8% will see the stock hit the forecast high price target while median target price for the stock is $20.00.
Insiders at the company have transacted a total of 49 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 15 of these insider trades were purchases, accounting for 521,693 shares. Insider sales of the common stock occurred on 34 occasions, with total insider shares sold totaling 153,896 shares.
The top 3 mutual fund holders in Chegg Inc. are American Funds AMCAP Fund, Vanguard US Growth Fund, and Vanguard Total Stock Market Index. American Funds AMCAP Fund owns 4.76 million shares of the company’s stock, all valued at over $75.62 million. Vanguard Total Stock Market Index bought 5220.0 shares to bring its total holdings to over 3.63 million shares at a value of $57.65 million. Vanguard Total Stock Market Index now owns shares totaling to 2.87% of the shares outstanding.
Shares of Chegg Inc. (NYSE: CHGG) opened at $15.65, down -$0.24 from a prior closing price of $15.89. However, the script later moved the day high at 15.90, down -2.14%. The company’s stock has a 5-day price change of -7.82% and -44.62% over the past three months. CHGG shares are trading -38.46% year to date (YTD), with the 12-month market performance down to -49.25% lower. It has a 12-month low price of $15.30 and touched a high of $37.64 over the same period. CHGG has an average intraday trading volume of 2.64 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.75%, -21.96%, and -28.37% respectively.
Institutional ownership of Chegg Inc. (NYSE: CHGG) shares accounts for 97.50% of the company’s 125.73M shares outstanding. Mutual fund holders own 41.56%, while other institutional holders and individual stakeholders account for 50.89% and 31.80% respectively.
It has a market capitalization of $2.00B and a beta (3y monthly) value of 1.13. The stock’s trailing 12-month PE ratio is 8.54, while the earnings-per-share (ttm) stands at $1.82. The company has a PEG of 0.43 and a Quick Ratio of 8.20 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.09% over the week and 3.22% over the month.
Analysts forecast that Chegg Inc. (CHGG) will achieve an EPS of $0.25 for the current quarter, $0.33 for the next quarter and $1.34 for 2024. The lowest estimate earnings-per-share for the quarter is $0.2 while analysts give the company a high EPS estimate of $0.29. Comparatively, EPS for the current quarter was $0.32 a year ago. Earnings per share for the fiscal year are expected to decrease by -8.50%, and 13.65% over the next financial year. EPS should shrink at an annualized rate of 20.00% over the next five years, compared to 60.60% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Chegg Inc. (CHGG) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 12 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”
KeyBanc Capital Markets coverage for the Chegg Inc. (CHGG) stock in a research note released on January 19, 2023 offered a Overweight rating with a price target of $29. Needham was of a view on January 18, 2023 that the stock is Hold, while Needham gave the stock Buy rating on September 26, 2022, issuing a price target of $28. Northland Capital on their part issued Outperform rating on September 08, 2022.
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