Zacks: Brokerages Anticipate Chegg Inc (CHGG) Will Post Earnings of $0.08 Per Share

Wall Street brokerages expect that Chegg Inc (NYSE:CHGG) will report earnings per share of $0.08 for the current fiscal quarter, according to Zacks. Five analysts have issued estimates for Chegg’s earnings, with the lowest EPS estimate coming in at $0.07 and the highest estimate coming in at $0.12. Chegg posted earnings per share of $0.06 in the same quarter last year, which suggests a positive year over year growth rate of 33.3%. The firm is scheduled to report its next quarterly earnings report on Tuesday, July 24th.

According to Zacks, analysts expect that Chegg will report full year earnings of $0.40 per share for the current year, with EPS estimates ranging from $0.33 to $0.47. For the next year, analysts expect that the business will report earnings of $0.54 per share, with EPS estimates ranging from $0.40 to $0.71. Zacks’ earnings per share calculations are a mean average based on a survey of research analysts that follow Chegg.

Chegg (NYSE:CHGG) last issued its earnings results on Thursday, April 26th. The technology company reported $0.10 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.09 by $0.01. The firm had revenue of $76.95 million for the quarter, compared to the consensus estimate of $74.15 million. Chegg had a negative return on equity of 0.95% and a negative net margin of 6.12%. The company’s revenue was up 22.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.06 EPS.

CHGG has been the topic of a number of research analyst reports. Raymond James downgraded Chegg from an “outperform” rating to a “market perform” rating in a report on Friday, April 27th. They noted that the move was a valuation call. Citigroup downgraded Chegg from a “buy” rating to a “neutral” rating and raised their target price for the company from $22.70 to $23.00 in a report on Tuesday, March 13th. Zacks Investment Research downgraded Chegg from a “hold” rating to a “sell” rating in a report on Thursday, February 22nd. Morgan Stanley raised their target price on Chegg from $23.00 to $24.00 and gave the company a “hold” rating in a report on Friday, April 27th. Finally, Lake Street Capital raised their price objective on Chegg from $15.00 to $16.00 and gave the company a “hold” rating in a report on Tuesday, February 13th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $21.00.

In related news, insider Nathan J. Schultz sold 4,318 shares of the firm’s stock in a transaction on Friday, May 18th. The stock was sold at an average price of $26.00, for a total transaction of $112,268.00. Following the completion of the transaction, the insider now directly owns 508,778 shares of the company’s stock, valued at approximately $13,228,228. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Andrew J. Brown sold 200,000 shares of the firm’s stock in a transaction on Thursday, May 10th. The stock was sold at an average price of $25.07, for a total value of $5,014,000.00. Following the transaction, the insider now directly owns 702,897 shares of the company’s stock, valued at $17,621,627.79. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,289,399 shares of company stock worth $29,416,008. 10.80% of the stock is currently owned by company insiders.

A number of large investors have recently made changes to their positions in CHGG. Unterberg Capital LLC raised its position in shares of Chegg by 5.0% in the 4th quarter. Unterberg Capital LLC now owns 315,000 shares of the technology company’s stock worth $5,141,000 after acquiring an additional 15,000 shares in the last quarter. Penbrook Management LLC bought a new position in shares of Chegg in the 4th quarter worth about $1,977,000. Cortina Asset Management LLC bought a new position in shares of Chegg in the 4th quarter worth about $6,341,000. Teacher Retirement System of Texas bought a new position in shares of Chegg in the 4th quarter worth about $501,000. Finally, Suntrust Banks Inc. bought a new stake in Chegg in the 4th quarter valued at about $182,000.

Shares of CHGG stock traded up $0.23 during trading hours on Friday, reaching $26.84. The company’s stock had a trading volume of 517,062 shares, compared to its average volume of 1,688,716. The company has a market cap of $2.98 billion, a PE ratio of -298.22, a P/E/G ratio of 18.35 and a beta of 1.42. Chegg has a fifty-two week low of $11.47 and a fifty-two week high of $26.91.

Chegg announced that its board has authorized a stock buyback plan on Wednesday, March 28th that permits the company to buyback $20.00 million in outstanding shares. This buyback authorization permits the technology company to reacquire up to 0.9% of its shares through a private placement purchase. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Chegg Company Profile

Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.

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