KeyBanc Capital Markets slashes price target on Chegg Inc. [CHGG] – find out why.

Chegg Inc. [NYSE: CHGG] loss -1.45% on the last trading session, reaching $21.03 price per share at the time. The company report on February 6, 2023 that Chegg Reports 2022 Earnings and Gives 2023 Guidance.

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Chegg Services revenue grew 10%, with over 8 million subscribers in 2022.

Chegg, Inc. (NYSE:CHGG), the leading student-first connected learning platform, today reported financial results for the three and twelve months ended December 31, 2022.

Chegg Inc. represents 126.13 million in outstanding shares, while the company has a total market value of $2.58 billion with the latest information. CHGG stock price has been found in the range of $20.695 to $21.42.

If compared to the average trading volume of 1.71M shares, CHGG reached a trading volume of 5394035 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $27.51 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 2.70. 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.

KeyBanc Capital Markets have made an estimate for Chegg Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 19, 2023. The new note on the price target was released on January 18, 2023, representing the official price target for Chegg Inc. stock. Previously, the target price had yet another raise to $28, while Needham analysts kept a Buy rating on CHGG stock.

The Average True Range (ATR) for Chegg Inc. is set at 1.05, with the Price to Sales ratio for CHGG stock in the period of the last 12 months amounting to 3.36. The Price to Book ratio for the last quarter was 2.53, with the Price to Cash per share for the same quarter was set at 7.66. Price to Free Cash Flow for CHGG in the course of the last twelve months was 10.64 with Quick ratio for the last quarter at 7.20.

Trading performance analysis for CHGG stock

Chegg Inc. [CHGG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.47. With this latest performance, CHGG shares dropped by -20.49% in over the last four-week period, additionally sinking by -10.85% over the last 6 months – not to mention a drop of -15.61% 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 38.11, with the RSI for the last a single of trading hit 40.65, and the three-weeks RSI is set at 38.80 for Chegg Inc. [CHGG]. The present Moving Average for the last 50 days of trading for this stock 25.16, while it was recorded at 20.99 for the last single week of trading, and 22.24 for the last 200 days.

Chegg Inc. [CHGG]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Chegg Inc. [CHGG] shares currently have an operating margin of +10.50 and a Gross Margin at +67.16. Chegg Inc.’s Net Margin is presently recorded at -0.19.

Return on Equity for this stock declined to -0.17, with Return on Assets sitting at -0.06.

Chegg Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 7.20 and a Current Ratio set at 7.20.

Chegg Inc. [CHGG]: An earnings per share (EPS) analysis

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 20.00%.

An analysis of insider ownership at Chegg Inc. [CHGG]

There are presently around $2,460 million, or 97.50% of CHGG stock, in the hands of institutional investors. The top three institutional holders of CHGG stocks are: BAILLIE GIFFORD & CO with ownership of 17,929,525, which is approximately -1.532% of the company’s market cap and around 2.10% of the total institutional ownership; VANGUARD GROUP INC, holding 11,766,644 shares of the stock with an approximate value of $247.45 million in CHGG stocks shares; and BLACKROCK INC., currently with $183.8 million in CHGG stock with ownership of nearly 3.434% 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 138 institutional holders increased their position in Chegg Inc. [NYSE:CHGG] by around 12,438,193 shares. Additionally, 139 investors decreased positions by around 22,416,048 shares, while 41 investors held positions by with 82,112,627 shares. The mentioned changes placed institutional holdings at 116,966,868 shares, according to the latest SEC report filing. CHGG stock had 49 new institutional investments in for a total of 3,939,870 shares, while 35 institutional investors sold positions of 3,610,684 shares during the same period.


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