Chegg Stock Leaps To Nearly 3-Month High On Convertible Notes Buyback, Wins Retail Approval

Chegg said that following the closing, approximately $127.9 million aggregate principal amount of the notes will remain outstanding and about $207.5 million will remain available under its securities repurchase program.

Shares of education technology company Chegg Inc ($CHGG) soared as much as 16% on Monday, to levels last seen at the end of August, after the firm announced the repurchase of its 0% convertible senior notes due 2026.

Chegg said that it has entered into individual, privately negotiated repurchase agreements with certain holders of its outstanding 0% convertible senior notes due 2026.

The agreements pertain to the repurchase of approximately $116.6 million in aggregate principal amount of the notes for an aggregate cash repurchase price of approximately $96.2 million.

Chegg said that following the closing, approximately $127.9 million aggregate principal amount of the notes will remain outstanding and about $207.5 million will remain available under its securities repurchase program.

Following the announcement, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (77/100) from ‘neutral’ a day ago. The move was accompanied by ‘high’ message volume.

Most Stocktwits followers of the ticker are expressing a positive stake on the stock.

https://stocktwits.com/sputn2022/message/593994829

https://stocktwits.com/JBr0/message/593991041

The company recently announced its third-quarter earnings report that saw its total net revenues fall 13% year-over-year (YoY) to $136.6 million.

Subscription services revenues decreased 14% YoY to $119.8 million. Net loss widened to $212.64 million during the quarter from $18.28 million in the same quarter a year ago.

For the fourth quarter, the firm expects total net revenues in the range of $141 million to $143 million while Subscription services revenues are expected in the range of $126 million to $128 million.

Despite Monday’s rally, Chegg shares have lost nearly 80% since the beginning of the year.

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