Chegg Stock Named a Top 2020 Pick at Needham

The shares are eyeing their fifth consecutive win

Deputy Editor
Dec 19, 2019 at 9:42 AM
facebook twitter linkedin


Online learning platform Chegg Inc (NYSE:CHGG) is up today after Needham called the stock one of its top picks for 2020, and adding the equity to its conviction list. Now, the security is eyeing a five-day win streak -- its longest in over a month. At last check, the shares of CHGG are up 1.1% to trade at $38.81. 

In recent months CHGG has been pushing higher, thanks in part to a post-earnings pop back in early November. This helped push the security back toward its $40 region, where it quickly lost steam later in the month. The 120-day moving average quickly caught the shares, however, sparking its recent win streak. For the year, the stock has added over 35%. 

Analysts have taken notice, with 10 of the 12 in coverage calling the security a "buy" or better. Plus, the consensus 12-month target price of $43.79 represents a level untouched by the equity since mid-August. 

While short interest has begun to inch lower -- down 4.4% in the last two reporting periods -- the 19.25 million shares sold short represent a solid 17.5% of Chegg's available float. Plus, it would take 12 days to cover all these bearish bets, which could propel the stock higher, should these pessimistic positions continue to unwind. 

 

 

 

Bernie's Best Stock Bets for Summer 2021

1608308875

 




 
Special Offers from Schaeffer's Trading Partners