Goldman has recently raised Chegg Inc (CHGG) stock to Neutral rating, as announced on August 6, 2024, according to Finviz. Earlier, on July 16, 2024, Morgan Stanley had raised the stock rating, setting a price target of $3.25 for CHGG stock. Jefferies also reduced Underperform rating with a price target of $4. Additionally, Craig Hallum reduced Hold rating on April 30, 2024, with a target price of $7. JP Morgan analysts, in their report published on March 11, 2024, also resumed Neutral rating for Chegg Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Chegg Inc (CHGG) Stock Trading Recap
On Tuesday, Chegg Inc (CHGG) stock saw a modest uptick, ending the day at $2.45 which represents a slight increase of $0.08 or 3.38% from the prior close of $2.37. The stock opened at $2.37 and touched a low of $2.29 during the day, reaching a high of $2.47. The volume of shares traded was 5.31 million exceeding the average volume of 4.03 million.
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CHGG Stock Performance and Moving Averages
In recent trading, Chegg Inc (CHGG) stock price has shown some volatility, fluctuating 8.41% over the last five trades and 50.31% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -32.32%, and it has gained 17.79% in the previous three months. Currently, CHGG is trading at 27.90%, 39.98%, and -37.10% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CHGG, a Consumer Defensive sector stock, is trading -78.66% below its 52-week high but remains 82.82% above its 52-week low. The Average True Range (ATR) (14 days) of 0.18 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Chegg Inc’s Profitability and Valuation Ratios
Chegg Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 1.35% and a profit margin of -124.05%, with a gross margin of -32.32%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Chegg Inc’s market capitalization stands at $255.55 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 3.7. Additionally, the Price-to-Sales Ratio is 0.39, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.38, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 5.54% of Chegg Inc (CHGG)’s shares, while financial institutions hold 80.48%.
