Chegg Target of Unusually Large Options Trading (NYSE:CHGG)

10 Feb 2026, 16:30 by Michael Walen · The Markets Daily

Chegg, Inc. (NYSE:CHGG – Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors purchased 7,287 call options on the company. This is an increase of approximately 300% compared to the average volume of 1,820 call options.

Key Headlines Impacting Chegg

Here are the key news stories impacting Chegg this week:

Positive Sentiment: Q4 EPS slightly beat Street expectations and revenue roughly matched estimates, which reduced downside from a larger miss. Business Wire Q4 Release
Positive Sentiment: Unusually large options activity: traders bought ~7,287 CHGG call contracts (about 300% above normal call volume), indicating some market participants are taking speculative bullish positions or hedging. (Options volume report)
Neutral Sentiment: Analyst coverage: Needham reaffirmed a “hold” rating on CHGG, keeping consensus street sentiment cautious. Benzinga
Neutral Sentiment: Management moves: Chegg appointed Karine Allouche as GM for Language Learning and Skills Integration in Europe — a small governance/operational positive but not material near term. Business Wire Appointment
Negative Sentiment: Guidance shock: Chegg cut Q1 revenue guidance to $60.0–$62.0M versus consensus near $71.1M — a significant shortfall that is the primary driver of the share decline as it signals softer near‑term demand. Guidance in Q4 Release
Negative Sentiment: Operational weakness and liquidity concerns: Q4 showed ~49% YoY revenue decline, materially lower gross profit, continued net losses and a sharp drop in cash on the balance sheet — metrics highlighted in coverage and cited by traders selling into the print. QuiverQuant Benzinga: Stock Reaction

Wall Street Analyst Weigh In

Several brokerages have weighed in on CHGG. Zacks Research downgraded Chegg from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Weiss Ratings reissued a “sell (e+)” rating on shares of Chegg in a research note on Monday, December 29th. Finally, Needham & Company LLC restated a “hold” rating on shares of Chegg in a research report on Tuesday. Two research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Chegg has an average rating of “Strong Sell” and a consensus price target of $1.00.

Check Out Our Latest Stock Analysis on Chegg

Institutional Trading of Chegg

Several hedge funds have recently bought and sold shares of the stock. Jefferies Financial Group Inc. grew its stake in shares of Chegg by 14.2% in the third quarter. Jefferies Financial Group Inc. now owns 88,269 shares of the technology company’s stock valued at $133,000 after buying an additional 11,000 shares in the last quarter. Burford Brothers Inc. increased its position in Chegg by 86.2% during the 3rd quarter. Burford Brothers Inc. now owns 25,798 shares of the technology company’s stock worth $39,000 after purchasing an additional 11,944 shares in the last quarter. Spectrum Wealth Advisory Group LLC grew its holdings in shares of Chegg by 36.8% during the second quarter. Spectrum Wealth Advisory Group LLC now owns 48,370 shares of the technology company’s stock worth $59,000 after purchasing an additional 13,000 shares during the last quarter. CWM LLC raised its position in Chegg by 56.2% during the 2nd quarter. CWM LLC now owns 41,022 shares of the technology company’s stock worth $50,000 after purchasing an additional 14,758 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its stake in Chegg by 101.5% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 30,861 shares of the technology company’s stock worth $37,000 after buying an additional 15,549 shares during the last quarter. 95.18% of the stock is currently owned by institutional investors and hedge funds.

Chegg Trading Down 7.7%

Chegg stock traded down $0.06 during mid-day trading on Tuesday, hitting $0.69. 1,716,590 shares of the company’s stock were exchanged, compared to its average volume of 1,279,143. The stock has a 50 day moving average of $0.87 and a two-hundred day moving average of $1.14. Chegg has a 1-year low of $0.44 and a 1-year high of $1.90. The stock has a market cap of $75.61 million, a P/E ratio of -0.96 and a beta of 1.98.

Chegg (NYSE:CHGG – Get Free Report) last released its earnings results on Monday, February 9th. The technology company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.19) by $0.18. Chegg had a negative return on equity of 9.41% and a negative net margin of 17.14%.The firm had revenue of $72.66 million for the quarter, compared to analyst estimates of $71.00 million. As a group, research analysts predict that Chegg will post 0.15 EPS for the current fiscal year.

About Chegg

(Get Free Report)

Chegg, Inc (NYSE: CHGG) is a leading education technology company headquartered in Santa Clara, California. Originally founded in 2005, Chegg has evolved from a textbook rental service into a comprehensive digital learning platform. Its suite of subscription-based offerings addresses a wide range of academic needs, catering primarily to high school and college students seeking homework help, study resources, and career guidance.