Chegg (CHGG) Received its Third Buy in a Row

After KeyBanc and Northland Securities gave Chegg (NYSE: CHGG) a Buy rating last month, the company received another Buy, this time from Barrington. Analyst Alexander Paris reiterated a Buy rating on Chegg today and set a price target of $60.00. The company’s shares closed last Friday at $79.91.

According to TipRanks.com, Paris is a 3-star analyst with an average return of 2.7% and a 43.7% success rate. Paris covers the Services sector, focusing on stocks such as Universal Technical Institute, American Public Education, and Adtalem Global Education.

Currently, the analyst consensus on Chegg is a Strong Buy with an average price target of $68.83, which is a -14.0% downside from current levels. In a report issued on July 23, Morgan Stanley also maintained a Buy rating on the stock with a $83.00 price target.

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Based on Chegg’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $132 million and GAAP net loss of $5.71 million. In comparison, last year the company earned revenue of $97.41 million and had a GAAP net loss of $4.32 million.

Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CHGG in relation to earlier this year. Most recently, in May 2020, Richard Sarnoff, a Director at CHGG sold 66,666 shares for a total of $4,339,290.

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Chegg, Inc. engages in the operations of learning platform for students. It intends to empower students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades, and test scores. The firm offers required and non-required scholastic materials including textbooks in any format; access to online homework help and textbook solutions; course organization and scheduling; college and university matching tools; and scholarship connections. Its services include Chegg study, writing, tutors, and math solver. The company was founded by Osman Rashid and Aayush Phumbhra on July 29, 2005 and is headquartered in Santa Clara, CA.