Chegg Inc. (CHGG): Analysis on the Earning Per Share

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Chegg Inc. (NYSE:CHGG) changes shares on Thursday trading session, with a change of 1.25% or $0.8 shares. The trading starts at $64.50 and closed at $64.15 throughout the day. The trading session low price was $62.5211 and day high was $65.00 on Thursday, June 25. After the session, the Consumer Defensive sector daily volume shifted to 4.04 million while its average volume is 3.67M. In other hand, the CHGG market cap reached to $7.47B. While, its current target price is $64.95 according to WSJ.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is up 2.92% and up 6.93% for month. Its quarterly performance was 77.17% above, while its half year performance is up 69.23%. CHGG yearly performance stood at positive 76.02% and rise 71.33% for year-to-date. Current recommendation for Chegg Inc. is 1.90.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. CHGG EPS (TTM) for 12-month is -0.09. EPS for this year is 38.70%, while for the next year its value is 1.37. Its EPS Q/Q reached -26.10%. It has an EPS of 36.50% up for past five years and for the next five years will be up 25.00%.

Let’s take a look on the analyst recommendations on CHGG for the current month and previous month. For the current month, 9 of 13 analysts recommend stock as Buy while 0 as Sell, 1 as overweight, 0 as underweight and 3 as Hold. As compared with the previous month ratings, 13 analysts participate in stock recommendation. Out of 13, 0 rated it sell, 10 rated it as Buy and 3 as Hold Ratings. On the other hand, target price ranges from $44.00-$80.00. Average target price for CHGG was reached at $61.92.

Baillie Gifford and Company, Vanguard Group, Inc. (The) and Blackrock Inc. are the top three holders in Chegg Inc. (CHGG) stock. On Mar 30, 2020, Baillie Gifford and Company has 14.42 million shares which valued 516.0 million. On Mar 30, 2020, Vanguard Group, Inc. (The) owned 10.67 million shares which valued at 381.93 million. On Mar 30, 2020, Blackrock Inc. has a total of 10.55 million shares which valued at 377.59 million. In the end, Blackrock Inc. have 8.53% shares outstanding of Chegg Inc. (CHGG) on Mar 30, 2020. The insider ownership moved to 3.40%.

The company posted an EPS (TTM) of -0.09. According to the most recent quarter report on (Jun 2020), 12 analysts estimated an average EPS of 0.31, while 0.23 EPS posted a year ago period. Analyst Estimated EPS for CHGG published in the report was 0.21-0.38 during the same period. Comparing with last year, the average estimated EPS was 0.23 which is higher than 0.22 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for CHGG rise 57.30% for period of 200 days. SMA for 50 days was 16.93% which is showing green signal, while SMA-20 was 5.84%. The moving average value for Chegg Inc. (CHGG) is 44.91 and 62.04 for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in CHGG stock. On Jun 22, Schultz Nathan J., PRESIDENT OF LEARNING SERVICES, sold 35,083 trading shares at the cost of $70.19, which valued at 2.46 million. On Jun 03, Lem Esther, CHIEF MARKETING OFFICER, sold 2,263 shares at the cost of $61.36, with total shares of 161,564. On Jun 03, FILLMORE JOHN PAUL, CHIEF STRATEGY OFFICER, sold 1,321 shares at the cost of 62.30. After this transaction, FILLMORE JOHN PAUL total shares reached to 139,672 which valued at 82298.0.