In a report released today, Alexander Paris from Barrington maintained a Buy rating on Chegg Inc (NYSE: CHGG). The company’s shares closed on Friday at $28.76, close to its 52-week high of $29.76.
Paris wrote:
“Valuation/: At current levels, Chegg is trading at 8.1x our 2019 revenue estimate, roughly in line with its Ed Tech peers (7.8x) and a group of high‐growth SaaS companies (8.2x). As such, we are reiterating our OUTPERFORM investment rating and our 12‐month price target of $32, assuming a 9x multiple on our 2019 revenue estimate, reflecting our increased confidence in management’s near‐ and intermediate‐term growth strategies.”
According to TipRanks.com, Paris is a 4-star analyst with an average return of 13.2% and a 64.0% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Capella Education Company.
Currently, the analyst consensus on Chegg Inc is a Moderate Buy with an average price target of $25.67.
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Based on Chegg Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $2.62 million. In comparison, last year the company had a GAAP net loss of $6.03 million.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock. Last month, Jeffrey Housenbold, a Director at CHGG sold 40,000 shares for a total of $1,114,400.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Chegg, Inc. operates learning platform for students. It provides student learning platform, empowering students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades and test scores.
