In a recent development, JP Morgan maintained its Neutral recommendation for Chegg (NYSE:CHGG) on Thursday, reaffirming an average one-year price target of $14.59. This suggests a 77% upside from its last close at $8.24, which is near its 52-week low, according to InvestingPro data.
The leading student-centric learning platform, based in Santa Clara, is projected to have an annual revenue of $837 million, marking an increase of 13.05%. The non-GAAP EPS is expected to be 1.36. Despite these promising figures, institutional ownership has seen a decrease of 14.90% to 474 funds, owning 127,776K shares with an average portfolio weight of 0.09%.
According to InvestingPro data, Chegg's revenue for the last twelve months was $740.39 million, with a gross profit of $547.2 million, reflecting an impressive gross profit margin of 73.91%. However, the company's revenue growth has been on a decline, with a quarterly decrease of 6.09%. This aligns with one of the InvestingPro Tips, which indicates that the company's revenue has been declining at an accelerating rate.
The put/call ratio stands at a bullish 0.76, indicating a potential positive outlook for the company amongst traders. This is in spite of the company's stock having taken a significant hit over the last six months, as pointed out by InvestingPro Tips.
Key stakeholders in Chegg have seen significant shifts. Baillie Gifford, holding 9.25% of the shares, saw a decrease of 26.21%. Sylebra Capital and Jane Street Group increased their stakes by 59.16% and 98.55% respectively, now owning 7.78% and 7.26%. Sands Capital Management experienced a slight decrease of 2.12%, bringing their share to 6.57%. AMCAP FUND maintained their position with no change at 5.66%.
This recent analysis by JP Morgan provides an updated view of the financial landscape for Chegg and its investors, highlighting the fluctuations in stakeholder positions and projections for the company's future performance. For more insights, traders and investors might want to consider the InvestingPro platform, which offers real-time metrics and a host of other tips, such as the fact that Chegg's management has been aggressively buying back shares and the company is trading at a low earnings multiple, with a P/E ratio of 3.72. For more details, visit InvestingPro.
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