Management Is On a Buying Frenzy for This Growth Stock
Chegg (NYSE: CHGG) is an education technology company that primarily serves college students. The company thrived at the pandemic's onset as millions of students were sent home to remote learning. Chegg's resources are helpful to students both online and in person, but more so online.
As vaccination against COVID-19 gained momentum and colleges asked students to return to campus, they balked at the idea. College enrollment fell considerably, and that has hurt subscriber growth at Chegg. The stock crashed 85% following the news, and management thinks the selling is overdone.
On June 2, Chegg's board of directors authorized an increase to its share buyback program of $1 billion. That's on top of an existing $1 billion program it has nearly completed. That's a relatively massive stock buyback program. Chegg's market capitalization stood at $2.2 billion as of this writing. If it executes this most recent program in full, it could be that it buys back nearly 50% of its shares outstanding.
Source Fool.com
