Chegg Inc (NYSE: CHGG)’s stock price has increased by 2.85 compared to its previous closing price of 7.37. However, the company has seen a -5.25% decrease in its stock price over the last five trading sessions. InvestorPlace reported 2024-03-27 that Software stocks permeate today’s market, and the trend is here to stay. Democratized, no-code platforms make software startups a breeze, and many of these founders (and investors) have their sights on liquidity events that end with the company listed on public exchanges.
Is It Worth Investing in Chegg Inc (NYSE: CHGG) Right Now?
The 36-month beta value for CHGG is also noteworthy at 1.27. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 2 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”
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The public float for CHGG is 99.02M, and at present, short sellers hold a 15.84% of that float. The average trading volume of CHGG on March 28, 2024 was 2.82M shares.
CHGG’s Market Performance
CHGG’s stock has seen a -5.25% decrease for the week, with a -14.25% drop in the past month and a -31.83% fall in the past quarter. The volatility ratio for the week is 4.20%, and the volatility levels for the past 30 days are at 3.82% for Chegg Inc The simple moving average for the last 20 days is -6.67% for CHGG stock, with a simple moving average of -20.18% for the last 200 days.
Analysts’ Opinion of CHGG
Many brokerage firms have already submitted their reports for CHGG stocks, with JP Morgan repeating the rating for CHGG by listing it as a “Neutral.” The predicted price for CHGG in the upcoming period, according to JP Morgan is $9 based on the research report published on March 11, 2024 of the current year 2024.
Piper Sandler, on the other hand, stated in their research note that they expect to see CHGG reach a price target of $8.50, previously predicting the price at $9. The rating they have provided for CHGG stocks is “Underweight” according to the report published on February 06th, 2024.
Goldman gave a rating of “Sell” to CHGG, setting the target price at $8 in the report published on January 19th of the current year.
CHGG Trading at -14.88% from the 50-Day Moving Average
After a stumble in the market that brought CHGG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -59.62% of loss for the given period.
Volatility was left at 3.82%, however, over the last 30 days, the volatility rate increased by 4.20%, as shares sank -11.35% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -30.27% lower at present.
During the last 5 trading sessions, CHGG fell by -5.25%, which changed the moving average for the period of 200-days by -27.81% in comparison to the 20-day moving average, which settled at $8.07. In addition, Chegg Inc saw -33.27% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CHGG starting from Schultz Nathan J., who sale 1,350 shares at the price of $10.41 back on Dec 13 ’23. After this action, Schultz Nathan J. now owns 421,025 shares of Chegg Inc, valued at $14,054 using the latest closing price.
Schultz Nathan J., the CHIEF OPERATING OFFICER of Chegg Inc, sale 630 shares at $10.13 during a trade that took place back on Dec 04 ’23, which means that Schultz Nathan J. is holding 426,802 shares at $6,382 based on the most recent closing price.
Stock Fundamentals for CHGG
Current profitability levels for the company are sitting at:
- -0.08 for the present operating margin
- 0.68 for the gross margin
The net margin for Chegg Inc stands at 0.03. The total capital return value is set at -0.05. Equity return is now at value 1.76, with 0.87 for asset returns.
Based on Chegg Inc (CHGG), the company’s capital structure generated 0.39 points at debt to capital in total, while cash flow to debt ratio is standing at 0.41. The debt to equity ratio resting at 0.64. The interest coverage ratio of the stock is -14.75.
Currently, EBITDA for the company is 61.99 million with net debt to EBITDA at 7.09. When we switch over and look at the enterprise to sales, we see a ratio of 1.76. The receivables turnover for the company is 22.81for trailing twelve months and the total asset turnover is 0.41. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.80.
Conclusion
In summary, Chegg Inc (CHGG) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
