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Nov. 29, 2021, 9:13 a.m. EST

Chegg stock bounces off 3-year low after $300 million ASR announced

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By Tomi Kilgore

Shares of Chegg Inc. /zigman2/quotes/205655041/composite CHGG -4.94% jumped 4.0% in premarket trading Monday, after the online education company announced a $300 million accelerated share repurchase (ASR) plan. The ASR plan comes after the stock closed at a three-year low of $24.99 on Friday. At that price, the ASR represents about 8.3% of Chegg's market capitalization of $3.62 billion. The company said it plans to enter into an ASR deal with a "financial institution" during the fourth quarter of 2021. "The accelerated share repurchase demonstrates the strength of our balance sheet, and it reaffirms our confidence in the long-term opportunity for Chegg, as well as our continued commitment to enhancing shareholder value," said Chief Executive Dan Rosensweig. The stock, which suffered a record 48.8% selloff on Nov. 2 in the wake of a disappointing earnings report, has plummeted 69.2% over the past three months through Friday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.84% has edged up 1.9%.

/zigman2/quotes/205655041/composite
US : U.S.: NYSE
$ 27.51
-1.43 -4.94%
Volume: 3.33M
Jan. 18, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.19 billion
Rev. per Employee
$399,031
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/zigman2/quotes/210599714/realtime
US : S&P US
4,577.11
-85.74 -1.84%
Volume: 2.74B
Jan. 18, 2022 4:56p
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