Chegg repurchases $8.9M convertible notes and draws ‘Reduce’ consensus from analysts
Chegg repurchased about $8.9 million of its 0% convertible senior notes due 2026 for $8.3 million, leaving $53.9 million outstanding and $141.8 million available under its repurchase program. Analysts gave Chegg a consensus “Reduce” rating with four sell, one hold and one strong buy and a $1.1250 average 12-month target.
1. Chegg Executes $8.3 Million Repurchase of 0% Convertible Senior Notes
Chegg has entered into privately negotiated agreements to repurchase approximately $8.9 million in aggregate principal amount of its 0% convertible senior notes due 2026 for an aggregate cash price of about $8.3 million. These transactions are part of Chegg’s existing securities repurchase program and are expected to close on December 30, 2025, subject to customary closing conditions. Upon closing, Chegg will have approximately $53.9 million in principal of these notes outstanding and will have roughly $141.8 million of repurchase authority remaining under its program.
2. Analysts Assign Consensus “Reduce” Rating to Chegg
Six brokerages covering Chegg have issued a consensus recommendation of "Reduce," comprising four sell ratings, one hold rating and one strong buy rating. Recent research notes include a reaffirmed sell (e+) rating from Weiss Ratings on December 22 and an upgrade to strong buy from Zacks Research on November 19. Institutional ownership remains high at 95.18%, with several funds initiating small positions during the first three quarters of the year, including Ground Swell Capital LLC, Quantbot Technologies LP and Hudson Bay Capital Management LP.