Chegg downgraded to Neutral from Buy at Citi » 06:1606/3006/30/20
Citi analyst Nithin…
Citi analyst Nithin Pejaver downgraded Chegg to Neutral from Buy with a price target of $66, up from $52. There are uncertainties regarding the upside potential in subscriber growth, Pejaver tells investors in a research note after speaking with over 100 admission offices at U.S. universities. With the stock now trading close to lifetime highs, it does not screen as "particularly cheap" on relative valuation measures, adds the analyst.
Chegg initiated with an Overweight at KeyBanc » 16:1906/2906/29/20
KeyBanc analyst Jason…
KeyBanc analyst Jason Celino initiated coverage of Chegg with an Overweight rating and $80 price target.
|Over a week ago|
Chegg price target raised to $75 from $70 at Northland » 08:0306/2306/23/20
Northland analyst Mike…
Northland analyst Mike Grondahl raised the firm's price target on Chegg to $75 from $70 and keeps an Outperform rating on the shares. Grondahl sees "an ever-increasing opportunity" for Chegg to take advantage of an unprecedented surge in summer enrollment as well as the return to college period that begins in mid-August, the analyst tells investors.
Chegg price target raised to $80 from $55 at Jefferies » 08:3606/2206/22/20
Jefferies analyst Brent…
Jefferies analyst Brent Thill raised the firm's price target on Chegg to $80 from $55 and keeps a Buy rating on the shares following what he described as an "upbeat" meeting with the company's CEO. While "COVID has certainly helped," the core was already growing 32% pre-COVID and management remains confident in healthy future growth while continuing to improve margins, Thill tells investors. While he believes bears will push back on valuation, he prefers taking a long-term view as he believes Chegg will "remain at the forefront of educational transformation," Thill said.
Unusually active option classes on open June 17th » 09:4006/1706/17/20
SHY, CHGG, CZR, ROKU, NAT, KR, BYND, BHC, NOK, IQ
Unusual total active…
Unusual total active option classes on open include: iShares Barclays 1 to 3 Year Treasury Bond Fund (SHY), Chegg (CHGG), Caesars (CZR), Roku (ROKU), Nordic American Tankers (NAT), Kroger (KR), Beyond Meat (BYND), Bausch Health (BHC), Nokia (NOK), and iQiyi (IQ).
Chegg authorizes $500M share repurchase program » 16:1706/1606/16/20
Chegg announced its board…
Chegg announced its board of directors has authorized the repurchase of up to $500 million of Chegg's common stock and/or convertible notes, through open market purchases, block trades and/or in privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of any repurchases will be determined by Chegg's management, in consultation with the board's Finance Committee, based on its evaluation of the capital needs of the business, market conditions, applicable legal requirements, and other factors. The repurchase program may extend over a period of approximately eighteen months, ending on December 31, 2021. Chegg currently expects to fund the repurchase program from its existing cash balance and future cash flows from operations.
Chegg price target raised to $70 from $53 at Needham » 09:2406/0506/05/20
Needham analyst Ryan…
Needham analyst Ryan MacDonald raised the firm's price target on Chegg to $70 from $53 and keeps a Buy rating on the shares after its acquisition of Mathway. The analyst notes that investors may initially question the valuation at about 7.7-times expected FY19 revenue, but Mathway represents a "strong strategic fit for Chegg", increasing its exposure with high school students, enhancing the capabilities of the existing Chegg Math Solver solution, and boosting its international expansion.
Chegg acquires Mathway for about $100M in all-cash transaction » 16:1306/0406/04/20
Chegg announced it has…
Chegg announced it has acquired the popular math solver Mathway. Mathway has subscribers in approximately 100 countries and has been localized in 13 languages. "Math proficiency is a foundational and critical pillar of learning around the world," said Nathan Schultz, President of Learning Services at Chegg. "The modern student understands that the mastery of math is more important than ever, and Mathway has built an incredible product that students love. Bringing Mathway into the Chegg family will bring additional subject coverage, languages, and international reach, significantly expanding our TAM," Schultz added. Chegg acquired Mathway for approximately $100 million in an all-cash transaction. There are potential additional payments of up to $15 million payable in cash over the next three years that remain subject to performance and other contingencies. Mathway's 2019 unaudited net revenue was approximately $13 million. Chegg expects the Q2 2020 revenue contribution of Mathway, after the effect of the fair-value adjustment through purchase accounting to deferred revenue, to be approximately $0.5 million and an adjusted EBITDA loss of approximately $0.5 million.
|Over a month ago|
Chegg call volume above normal and directionally bullish » 14:0506/0106/01/20
Bullish option flow…
Bullish option flow detected in Chegg with 5,638 calls trading, 1.2x expected, and implied vol increasing almost 3 points to 52.98%. Jun-20 65 calls and Jun-20 70 calls are the most active options, with total volume in those strikes near 4,100 contracts. The Put/Call Ratio is 0.25. Earnings are expected on July 27th.
Chegg price target raised to $70 from $60 at Northland » 09:2805/1905/19/20
Northland analyst Mike…
Northland analyst Mike Grondahl raised the firm's price target on Chegg to $70 from $60 and keeps an Outperform rating on the shares after the company noted on its Q1 earnings call that it has stepped up authentication for subscribers. He sees a multi-factor authentication process being deployed in the second half, possibly in August with the new fall college enrollment season, and believes it will be a major tailwind as Chegg has noted passwords are shared by multiples of its subscribers, the analyst tells investors.