Put Traders, Analysts Blast Sinking Chegg Stock

At least six firms have slashed their price targets on CHGG

Digital Content Manager
Feb 7, 2023 at 10:41 AM
facebook X logo linkedin


Chegg Inc (NYSE:CHGG) is down 21.1% to at $16.60 at last check, after the education tech name's 2023 net revenue forecast came in below estimates, while current-quarter revenue expectations missed the mark as well. This has the equity brushing off better-than-expected fourth-quarter earnings and revenue.

Analysts are already chiming in with bear notes. In fact, six firms have slashed their price targets on CHGG, with Piper Sandler lowering its objective to $17 from $23. The brokerage bunch already leans bearish, with nine of 14 firms in coverage rating the security a tepid "hold" or worse.

Options traders are blasting Chegg stock as well, with 4,540 calls and 6,197 puts across the tape so far, which is 16 times the volume that is typically seen at this point. The most popular contract is the February 17.50 call, followed by the 15 put in that monthly series, with new positions being opened at both.

This preference for bearish bets precedes the company's updates. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 2.27 sits higher than 86% of readings from the past year.  

Echoing this, CHGG's Schaeffer's put/call open interest ratio (SOIR) 1.54 sits higher than 96% of annual readings, indicating short-term options traders have rarely been more put biased.

Chegg stock is today trading at it lowest level since May, as it succumbs to overhead pressure at the $22 level and 200-day moving average. Year-over-year, CHGG is off 33.9%.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI