Investors Buy Large Volume of Chegg Call Options (NYSE:CHGG)

Chegg, Inc. (NYSE:CHGG) saw some unusual options trading activity on Monday. Traders purchased 6,864 call options on the company. This represents an increase of approximately 140% compared to the typical volume of 2,865 call options.

Insider Transactions at Chegg

In related news, Director Renee Varni Budig sold 54,347 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $0.78, for a total transaction of $42,390.66. Following the transaction, the director owned 376,311 shares in the company, valued at $293,522.58. This represents a 12.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.00% of the company’s stock.

Hedge Funds Weigh In On Chegg

Hedge funds have recently bought and sold shares of the company. GSA Capital Partners LLP bought a new position in shares of Chegg in the 2nd quarter valued at $836,000. Empowered Funds LLC lifted its position in shares of Chegg by 2.6% during the 1st quarter. Empowered Funds LLC now owns 377,353 shares of the technology company’s stock worth $280,000 after buying an additional 9,549 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of Chegg by 32.5% during the 1st quarter. Bank of New York Mellon Corp now owns 230,293 shares of the technology company’s stock worth $171,000 after buying an additional 56,531 shares during the last quarter. Renaissance Technologies LLC boosted its stake in Chegg by 0.3% in the first quarter. Renaissance Technologies LLC now owns 3,346,800 shares of the technology company’s stock valued at $2,481,000 after buying an additional 10,820 shares in the last quarter. Finally, Concurrent Investment Advisors LLC acquired a new stake in Chegg in the fourth quarter valued at about $105,000. 95.18% of the stock is owned by institutional investors.

Chegg Stock Performance

Shares of NYSE CHGG traded down $0.01 during trading hours on Monday, reaching $0.81. 107,060 shares of the stock were exchanged, compared to its average volume of 1,516,255. The stock’s fifty day simple moving average is $0.94 and its 200 day simple moving average is $0.91. The firm has a market capitalization of $89.71 million, a price-to-earnings ratio of -1.65 and a beta of 2.17. Chegg has a 52 week low of $0.45 and a 52 week high of $1.90.

Chegg (NYSE:CHGG) last released its quarterly earnings results on Thursday, August 6th. The technology company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.03. Chegg had a negative net margin of 19.96% and a negative return on equity of 13.38%. The business had revenue of $51.85 million for the quarter, compared to the consensus estimate of $49.50 million. Research analysts predict that Chegg will post -0.22 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CHGG shares. Zacks Research cut Chegg from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Weiss Ratings raised Chegg from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Chegg has a consensus rating of “Reduce”.

Chegg Company Profile

Chegg, Inc (NYSE: CHGG) is a leading education technology company headquartered in Santa Clara, California. Originally founded in 2005, Chegg has evolved from a textbook rental service into a comprehensive digital learning platform. Its suite of subscription-based offerings addresses a wide range of academic needs, catering primarily to high school and college students seeking homework help, study resources, and career guidance.

The company’s core services include Chegg Study, which provides step-by-step solutions and expert Q&A support; Chegg Writing, offering plagiarism checks and guided writing assistance; and Chegg Math Solver, a tool for solving mathematical problems with detailed explanations.