Stock Traders Purchase High Volume of Call Options on Chegg (CHGG)

Chegg Inc (NYSE:CHGG) was the target of unusually large options trading on Wednesday. Investors acquired 3,700 call options on the company. This represents an increase of 1,286% compared to the typical daily volume of 267 call options.

Shares of NYSE CHGG opened at $28.42 on Thursday. The company has a debt-to-equity ratio of 0.71, a current ratio of 10.11 and a quick ratio of 10.11. The firm has a market cap of $3.68 billion, a price-to-earnings ratio of 1,616.50, a PEG ratio of 16.33 and a beta of 1.49. Chegg has a 1 year low of $13.75 and a 1 year high of $32.82.

Chegg (NYSE:CHGG) last issued its quarterly earnings results on Monday, July 30th. The technology company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.08 by $0.04. The firm had revenue of $74.22 million during the quarter, compared to analyst estimates of $70.16 million. Chegg had a positive return on equity of 0.87% and a negative net margin of 5.01%. The firm’s quarterly revenue was up 31.8% on a year-over-year basis. During the same period last year, the company posted $0.06 EPS. equities research analysts forecast that Chegg will post 0.07 earnings per share for the current year.

In related news, CEO Daniel Rosensweig sold 150,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 12th. The stock was sold at an average price of $28.91, for a total value of $4,336,500.00. Following the sale, the chief executive officer now directly owns 2,433,753 shares in the company, valued at approximately $70,359,799.23. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director John E. York sold 25,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 14th. The shares were sold at an average price of $29.10, for a total value of $727,500.00. Following the completion of the sale, the director now owns 33,214 shares in the company, valued at $966,527.40. The disclosure for this sale can be found here. Insiders have sold a total of 490,000 shares of company stock worth $14,533,050 over the last quarter. Insiders own 10.80% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Northern Trust Corp boosted its stake in Chegg by 16.6% during the 2nd quarter. Northern Trust Corp now owns 1,326,785 shares of the technology company’s stock valued at $36,872,000 after purchasing an additional 188,758 shares in the last quarter. HM Payson & Co. bought a new position in Chegg during the 2nd quarter valued at $245,000. Bank of New York Mellon Corp boosted its stake in Chegg by 1.4% during the 2nd quarter. Bank of New York Mellon Corp now owns 419,470 shares of the technology company’s stock valued at $11,657,000 after purchasing an additional 5,910 shares in the last quarter. Nomura Holdings Inc. bought a new position in Chegg during the 2nd quarter valued at $6,773,000. Finally, Putnam Investments LLC boosted its stake in Chegg by 12.4% during the 2nd quarter. Putnam Investments LLC now owns 49,608 shares of the technology company’s stock valued at $1,379,000 after purchasing an additional 5,475 shares in the last quarter.

CHGG has been the topic of several analyst reports. Northland Securities upgraded Chegg to a “top pick” rating in a research report on Tuesday, June 12th. Jefferies Financial Group cut Chegg from a “buy” rating to a “hold” rating and lowered their target price for the company from $27.00 to $14.00 in a research report on Thursday, June 21st. They noted that the move was a valuation call. Barrington Research raised their target price on Chegg from $25.00 to $32.00 and gave the company an “outperform” rating in a research report on Friday, June 22nd. Citigroup raised their target price on Chegg from $23.50 to $27.00 and gave the company a “hold” rating in a research report on Tuesday, July 31st. Finally, Lake Street Capital raised their target price on Chegg from $20.00 to $26.00 and gave the company a “hold” rating in a research report on Tuesday, July 31st. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, three have given a buy rating and two have issued a strong buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $23.44.

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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