Chegg (CHGG) Declined on Disappointing Guidance

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, small-cap stocks performed well with varying results from the indexes.  The Russell 2000 Growth Index was up 6.07% while the Russell 2000 Value Index was 0.67% down in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Carillon Eagle Small Cap Growth Fund highlighted stocks like Chegg, Inc. (NYSE:CHGG) in the first quarter 2023 investor letter. Headquartered in Santa Clara, California, Chegg, Inc. (NYSE:CHGG) is a direct-to-student learning platform. On June 23, 2023, Chegg, Inc. (NYSE:CHGG) stock closed at $8.87 per share. One-month return of Chegg, Inc. (NYSE:CHGG) was -3.59%, and its shares lost 54.35% of their value over the last 52 weeks. Chegg, Inc. (NYSE:CHGG) has a market capitalization of $1.062 billion.

Carillon Eagle Small Cap Growth Fund made the following comment about Chegg, Inc. (NYSE:CHGG) in its first quarter 2023 investor letter:

“Chegg, Inc. (NYSE:CHGG) operates a direct-to-student learning platform. The stock came under pressure during the quarter as its guidance for the coming year was disappointing. In addition, the emergence of a high-profile artificial intelligence chatbot as a potential long-term competitive threat weighed on the stock.”

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Chegg, Inc. (NYSE:CHGG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Chegg, Inc. (NYSE:CHGG) at the end of first quarter 2023 which was 33 in the previous quarter.

We discussed Chegg, Inc. (NYSE:CHGG) in another article and shared Alger Weatherbie Specialized Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.