Chegg, Inc. (NYSE: CHGG) shares rose on Tuesday February 14 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Jefferies Group LLC reiterated a Buy rating on shares of Chegg, Inc. (NYSE: CHGG) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Buy on the shares. The one-year price target of $9.83 is above the opening price of $7.55, that has caused a number of other analysts to comment on the stock recently. Looking back over the last 52 weeks, Chegg, Inc. stock has a high of $8.57. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Chegg, Inc. (NYSE: CHGG) opened at $7.55 yesterday trading between $7.21 and $7.96, and last traded at $7.93, which represents a jump of $0.53 from the previous closing price.
Chegg, Inc. (NYSE: CHGG) currently has a market cap of 724.20M.
Chegg, Inc. (NYSE: CHGG) Average Daily Trading Volume
The stock’s average daily volume is 505,884 shares out of a total float 55,283,000 and some 290,918 shares crossed the trading desk yesterday, 23 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Chegg, Inc. (NYSE: CHGG) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Chegg, Inc. (NYSE: CHGG) have ranged from $3.15 – 8.570, and the stock now has a 50-day MA of $7.29 and 200-day MA of $7.21. Today’s last price is 7.49%% below the 52 week high of $8.57.
Earnings growth is a critical factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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