Chegg Inc [NYSE: CHGG] gained 18.00% or 1.6 points to close at $10.49 with a heavy trading volume of 6817623 shares. The company report on November 15, 2023 at 6:45 AM that Chegg Announces New $150 Million Accelerated Share Repurchase.
Chegg, Inc. (NYSE:CHGG), the leading student-first connected learning platform, today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with Morgan Stanley Bank, National Association, to repurchase $150 million of Chegg’s common stock.
Under the ASR, Chegg will make an initial payment of $150 million to Morgan Stanley Bank, National Association, and will receive an initial delivery of approximately 13.5 million shares of its common stock by November 15, 2023. The final number of shares to be repurchased will be based on the volume-weighted average price of Chegg’s common stock during the term of the ASR, less a discount. The final settlement of the ASR is expected to occur by the second quarter of 2024.
It opened the trading session at $9.39, the shares rose to $10.73 and dropped to $9.29, the range by which the price of stock traded the whole day. The daily chart for CHGG points out that the company has recorded 14.64% gains over the past six months. However, it is still -43.31% lower than its most recent low trading price.
If we look at the average trading volume of 2.21M shares, CHGG reached to a volume of 6817623 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 $10.31 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 3.00. 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.
Jefferies have made an estimate for Chegg Inc shares, keeping their opinion on the stock as Hold, with their previous recommendation back on May 02, 2023.
The Average True Range (ATR) for Chegg Inc is set at 0.54, with the Price to Sales ratio for CHGG stock in the period of the last 12 months amounting to 1.66. The Price to Book ratio for the last quarter was 1.17, with the Price to Cash per share for the same quarter was set at 2.26. Price to Free Cash Flow for CHGG in the course of the last twelve months was 7.52 with Quick ratio for the last quarter at 2.31.
Trading performance analysis for CHGG stock
Chegg Inc [CHGG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 17.73. With this latest performance, CHGG shares gained by 24.29% in over the last four-week period, additionally plugging by 14.64% over the last 6 months – not to mention a drop of -61.09% 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 69.58, with the RSI for the last a single of trading hit 76.04, and the three-weeks RSI is set at 64.64 for Chegg Inc [CHGG]. The present Moving Average for the last 50 days of trading for this stock 8.81, while it was recorded at 8.99 for the last single week of trading, and 11.74 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 +1.92 and a Gross Margin at +74.26. Chegg Inc’s Net Margin is presently recorded at +34.77.
Return on Total Capital for CHGG is now 0.58, given the latest momentum, and Return on Invested Capital for the company is 10.42. Return on Equity for this stock inclined to 23.98, with Return on Assets sitting at 9.90. When it comes to the capital structure of this company, Chegg Inc [CHGG] has a Total Debt to Total Equity ratio set at 108.32. Additionally, CHGG Total Debt to Total Capital is recorded at 52.00, with Total Debt to Total Assets ending up at 49.06. Long-Term Debt to Equity for the company is recorded at 107.65, with the Long-Term Debt to Total Capital now at 51.67.
Reflecting on the efficiency of the workforce at the company, Chegg Inc [CHGG] managed to generate an average of $128,748 per employee. Receivables Turnover for the company is 37.08 with a Total Asset Turnover recorded at a value of 0.28.Chegg Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.31 and a Current Ratio set at 2.31.
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 Institutional ownership at Chegg Inc [CHGG]
The top three institutional holders of CHGG stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2579%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $201.66 billion in CHGG stocks shares; and BERKSHIRE HATHAWAY INC, currently with $177.59 billion in CHGG stock with ownership which is approximately 5.7994%.