Chegg Inc. [NYSE: CHGG] price plunged by -1.87 percent to reach at -$1.49. The company report on August 19, 2020 that Chegg Prices Offering of $900.0 Million of 0% Convertible Senior Notes Due 2026.
Chegg, Inc. (NYSE: CHGG) today announced that it has priced $900.0 million aggregate principal amount of 0% convertible senior notes due 2026 (the “notes”). The aggregate principal amount of the offering was increased from the previously announced offering size of $750.0 million. The notes are to be sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). Chegg also granted the initial purchasers of the notes an option to purchase up to an additional $100.0 million aggregate principal amount of notes. The sale is expected to close on August 21, 2020, subject to customary closing conditions.
The notes will be general, unsecured, senior obligations of Chegg, and will not bear regular interest, and the principal amounts of the notes will not accrete. The notes will mature on September 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to June 1, 2026, the notes will be convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the notes may be settled in shares of Chegg common stock, cash or a combination of cash and shares of Chegg common stock, at the election of Chegg.
A sum of 5182209 shares traded at recent session while its average daily volume was at 3.52M shares. Chegg Inc. shares reached a high of $82.07 and dropped to a low of $76.46 until finishing in the latest session at $78.22.
The one-year CHGG stock forecast points to a potential upside of 16.99. The average equity rating for CHGG stock is currently 1.90, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Chegg Inc. [CHGG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CHGG shares is $94.23 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CHGG stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for Chegg Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 04, 2020. While these analysts kept the previous recommendation, Lake Street raised their target price from $44 to $79. The new note on the price target was released on August 04, 2020, representing the official price target for Chegg Inc. stock. Previously, the target price had yet another raise from $80 to $86, while KeyBanc Capital Markets kept a Overweight rating on CHGG stock.
The Average True Range (ATR) for Chegg Inc. is set at 4.14, with the Price to Sales ratio for CHGG stock in the period of the last 12 months amounting to 19.21. The Price to Book ratio for the last quarter was 19.46, with the Price to Cash per share for the same quarter was set at 5.67. Price to Free Cash Flow for CHGG in the course of the last twelve months was 74.35 with Quick ratio for the last quarter at 8.20.
CHGG Stock Performance Analysis:
Chegg Inc. [CHGG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.64. With this latest performance, CHGG shares gained by 1.66% in over the last four-week period, additionally plugging by 90.92% over the last 6 months – not to mention a rise of 90.92% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CHGG stock in for the last two-week period is set at 51.94, with the RSI for the last a single of trading hit 49.21, and the three-weeks RSI is set at 54.94 for Chegg Inc. [CHGG]. The present Moving Average for the last 50 days of trading for this stock 71.94, while it was recorded at 77.29 for the last single week of trading, and 49.45 for the last 200 days.
Insight into Chegg Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Chegg Inc. [CHGG] shares currently have an operating margin of +4.60 and a Gross Margin at +77.57. Chegg Inc.’s Net Margin is presently recorded at -2.34.
Return on Total Capital for CHGG is now 1.79, given the latest momentum, and Return on Invested Capital for the company is -0.91. Return on Equity for this stock declined to -2.11, with Return on Assets sitting at -0.85. When it comes to the capital structure of this company, Chegg Inc. [CHGG] has a Total Debt to Total Equity ratio set at 184.45. Additionally, CHGG Total Debt to Total Capital is recorded at 64.84, with Total Debt to Total Assets ending up at 61.79. Long-Term Debt to Equity for the company is recorded at 183.39, with the Long-Term Debt to Total Capital now at 64.47.
Reflecting on the efficiency of the workforce at the company, Chegg Inc. [CHGG] managed to generate an average of -$6,856 per employee. Receivables Turnover for the company is 23.75 with a Total Asset Turnover recorded at a value of 0.37.Chegg Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 8.20 and a Current Ratio set at 8.20.
CHGG Stock EPS
With the latest financial reports released by the company, Chegg Inc. posted 0.18/share EPS, while the average EPS was predicted by analysts to be reported at 0.08/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 125.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CHGG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Chegg Inc. go to 25.00%.
Chegg Inc. [CHGG] Insider Position Details
There are presently around $10,483 million, in the hands of institutional investors. The top three institutional holders of CHGG stocks are: BAILLIE GIFFORD & CO with ownership of 14,672,396, which is approximately 1.739% of the company’s market cap and around 2.90% of the total institutional ownership; COPPER ROCK CAPITAL PARTNERS, LLC, holding 10,721,633 shares of the stock with an approximate value of $838.65 million in CHGG stocks shares; and VANGUARD GROUP INC, currently with $819.36 million in CHGG stock with ownership of nearly -1.866% of the company’s market capitalization.
Positions in Chegg Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 241 institutional holders increased their position in Chegg Inc. [NYSE:CHGG] by around 29,497,929 shares. Additionally, 168 investors decreased positions by around 31,590,146 shares, while 19 investors held positions by with 72,937,431 shares. The mentioned changes placed institutional holdings at 134,025,506 shares, according to the latest SEC report filing. CHGG stock had 148 new institutional investments in for a total of 19,275,393 shares, while 27 institutional investors sold positions of 1,047,558 shares during the same period.