Chegg Inc. [NYSE: CHGG] surged by $2.19 during the normal trading session on Thursday and reaching a high of $106.8308 during the day while it closed the day at $105.65. The company report on February 18, 2021 that Chegg Announces Pricing of an Upsized $1.0 Billon Public Offering of Common Stock.
Chegg, Inc. (NYSE: CHGG), a Smarter Way to Student®, announced the pricing of its upsized underwritten registered public offering of 9,804,000 shares of its common stock at a public offering price of $102.00 per share. All 9,804,000 shares of its common stock are offered by Chegg. Chegg and Dan Rosensweig, our President, Chief Executive Officer and Co-Chairperson of the Board, who is the selling stockholder, have granted the underwriters a 30-day option to purchase up to an additional 1,470,600 shares of its common stock, consisting of 300,000 shares of common stock from the selling stockholder, and 1,170,600 shares of common stock to be issued by Chegg. The offering is expected to close on February 22, 2021, subject to the satisfaction of customary closing conditions.
Chegg expects to use the net proceeds from the offering for general corporate purposes, which may include acquisitions or other strategic transactions and repayment of indebtedness. Chegg will not receive any proceeds from the sale of the shares by the selling stockholder.
Chegg Inc. stock has also gained 0.59% of its value over the past 7 days. However, CHGG stock has inclined by 55.60% in the 3 months of the year. Over the past six months meanwhile, it has gained 35.07% and gained 16.96% year-on date.
The market cap for CHGG stock reached $12.81 billion, with 126.19 million shares outstanding and 125.41 million shares in the current float. Compared to the average trading volume of 1.86M shares, CHGG reached a trading volume of 5966489 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about 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 $114.00 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 2.00. 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.
Lake Street have made an estimate for Chegg Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on February 09, 2021. While these analysts kept the previous recommendation, Barrington Research raised their target price from $110 to $120. The new note on the price target was released on February 09, 2021, representing the official price target for Chegg Inc. stock. Previously, the target price had yet another raise from $100 to $120, while KeyBanc Capital Markets kept a Overweight rating on CHGG stock. On January 15, 2021, analysts increased their price target for CHGG shares from 100 to 115.
The Average True Range (ATR) for Chegg Inc. is set at 5.40, with the Price to Sales ratio for CHGG stock in the period of the last 12 months amounting to 19.88. The Price to Book ratio for the last quarter was 20.68, with the Price to Cash per share for the same quarter was set at 10.32. Price to Free Cash Flow for CHGG in the course of the last twelve months was 98.28 with Quick ratio for the last quarter at 9.10.
CHGG stock trade performance evaluation
Chegg Inc. [CHGG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.59. With this latest performance, CHGG shares gained by 6.04% in over the last four-week period, additionally plugging by 35.07% over the last 6 months – not to mention a rise of 157.87% 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 58.24, with the RSI for the last a single of trading hit 55.99, and the three-weeks RSI is set at 59.35 for Chegg Inc. [CHGG]. The present Moving Average for the last 50 days of trading for this stock 94.58, while it was recorded at 108.20 for the last single week of trading, and 77.27 for the last 200 days.
Chegg Inc. [CHGG]: An insightful look at the core 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 9.10 and a Current Ratio set at 9.10.
Earnings per share (EPS) analysis for Chegg Inc. [CHGG] stock
With the latest financial reports released by the company, Chegg Inc. posted 0.22/share EPS, while the average EPS was predicted by analysts to be reported at 0.15/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 46.70%. 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 30.00%.
Chegg Inc. [CHGG]: Insider Ownership positions
There are presently around $13,539 million, in the hands of institutional investors. The top three institutional holders of CHGG stocks are: BAILLIE GIFFORD & CO with ownership of 15,985,840, which is approximately 1.585% of the company’s market cap and around 2.00% of the total institutional ownership; VANGUARD GROUP INC, holding 11,006,970 shares of the stock with an approximate value of $1.16 billion in CHGG stocks shares; and BLACKROCK INC., currently with $1.02 billion in CHGG stock with ownership of nearly 13.182% of the company’s market capitalization.
Positions in Chegg Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 249 institutional holders increased their position in Chegg Inc. [NYSE:CHGG] by around 17,304,299 shares. Additionally, 234 investors decreased positions by around 14,955,156 shares, while 41 investors held positions by with 95,887,656 shares. The mentioned changes placed institutional holdings at 128,147,111 shares, according to the latest SEC report filing. CHGG stock had 102 new institutional investments in for a total of 3,370,036 shares, while 77 institutional investors sold positions of 3,691,697 shares during the same period.