Barrington Research Weighs in on Chegg Inc’s Q3 2019 Earnings (CHGG)

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Chegg Inc (NYSE:CHGG) – Barrington Research reduced their Q3 2019 earnings estimates for shares of Chegg in a note issued to investors on Tuesday, April 30th. Barrington Research analyst A. Paris. Jr now forecasts that the technology company will earn ($0.04) per share for the quarter, down from their prior forecast of ($0.03). Barrington Research currently has a “Buy” rating on the stock. Barrington Research also issued estimates for Chegg’s FY2019 earnings at $0.20 EPS and FY2020 earnings at $0.27 EPS.

Chegg (NYSE:CHGG) last released its quarterly earnings data on Monday, April 29th. The technology company reported $0.03 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.12 by ($0.09). Chegg had a negative net margin of 4.86% and a positive return on equity of 4.73%. The company had revenue of $97.40 million for the quarter, compared to analyst estimates of $94.69 million. During the same quarter in the prior year, the firm earned $0.10 EPS. The company’s revenue for the quarter was up 26.6% compared to the same quarter last year.

A number of other brokerages have also issued reports on CHGG. Zacks Investment Research lowered Chegg from a “buy” rating to a “hold” rating in a research report on Tuesday, March 12th. Morgan Stanley boosted their price objective on Chegg from $37.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Tuesday. Craig Hallum reaffirmed a “buy” rating and set a $50.00 target price (up from $45.00) on shares of Chegg in a research report on Tuesday. Berenberg Bank started coverage on Chegg in a research note on Wednesday, March 6th. They issued a “buy” rating and a $48.00 target price on the stock. Finally, Lake Street Capital reiterated a “hold” rating and set a $34.00 price target (up previously from $33.00) on shares of Chegg in a research note on Tuesday. Five equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. Chegg has a consensus rating of “Buy” and a consensus price target of $39.40.

Shares of CHGG stock opened at $35.87 on Friday. The company has a quick ratio of 8.29, a current ratio of 13.96 and a debt-to-equity ratio of 1.84. Chegg has a 1 year low of $22.50 and a 1 year high of $41.69. The firm has a market cap of $4.23 billion, a price-to-earnings ratio of 398.56, a price-to-earnings-growth ratio of 6.99 and a beta of 1.23.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Baillie Gifford & Co. increased its holdings in shares of Chegg by 41.4% during the first quarter. Baillie Gifford & Co. now owns 11,636,625 shares of the technology company’s stock worth $443,588,000 after buying an additional 3,405,917 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Chegg by 12.8% in the third quarter. Vanguard Group Inc. now owns 10,365,544 shares of the technology company’s stock worth $294,693,000 after purchasing an additional 1,174,038 shares during the last quarter. Vanguard Group Inc grew its stake in shares of Chegg by 12.8% in the third quarter. Vanguard Group Inc now owns 10,365,544 shares of the technology company’s stock worth $294,693,000 after purchasing an additional 1,174,038 shares during the last quarter. BlackRock Inc. grew its stake in shares of Chegg by 3.7% in the fourth quarter. BlackRock Inc. now owns 7,352,411 shares of the technology company’s stock worth $208,956,000 after purchasing an additional 262,200 shares during the last quarter. Finally, Sylebra HK Co Ltd boosted its position in Chegg by 4.5% during the fourth quarter. Sylebra HK Co Ltd now owns 6,946,262 shares of the technology company’s stock valued at $197,413,000 after acquiring an additional 301,487 shares during the last quarter.

In other news, Director Renee Varni Budig sold 45,000 shares of the business’s stock in a transaction that occurred on Monday, February 25th. The stock was sold at an average price of $39.47, for a total transaction of $1,776,150.00. Following the completion of the sale, the director now owns 58,194 shares in the company, valued at $2,296,917.18. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Andrew J. Brown sold 49,264 shares of Chegg stock in a transaction that occurred on Saturday, February 23rd. The shares were sold at an average price of $38.92, for a total transaction of $1,917,354.88. Following the completion of the sale, the chief financial officer now owns 198,947 shares of the company’s stock, valued at $7,743,017.24. The disclosure for this sale can be found here. Insiders sold a total of 1,066,074 shares of company stock worth $40,973,682 in the last three months. Company insiders own 10.80% of the company’s stock.

About Chegg

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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