Demystifying Chegg: Insights From 6 Analyst Reviews

6 analysts have expressed a variety of opinions on Chegg CHGG over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Chegg and provided 12-month price targets. The average target is $2.17, accompanied by a high estimate of $4.00 and a low estimate of $1.25. A negative shift in sentiment is evident as analysts have decreased the average price target by 37.28%.

Decoding Analyst Ratings: A Detailed Look

The standing of Chegg among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chegg. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Chegg compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Chegg's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Chegg's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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About Chegg

Chegg Inc is an American educational services company. The Chegg platform provides products and services to support learners with their academic course materials, as well as their career and personal skills development. The company's service and product offerings fall into two categories: Subscription Services, which encompasses Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings that can be accessed internationally through the company's websites and on mobile devices, and Skills and Other, which encompasses skills, advertising services, print textbooks, and eTextbooks offerings.

Chegg: A Financial Overview

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Chegg's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -13.47%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Chegg's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -155.67%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Chegg's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -77.26%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Chegg's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -20.09%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.38, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.