How does smart money feel about Chegg Inc (CHGG)?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Chegg Inc (NYSE:CHGG).

Is Chegg Inc a buy, sell, or hold? Hedge funds are becoming less confident. The number of long hedge fund bets were cut by 4 recently. At the end of this article, we will also compare CHGG to other stocks including Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH), and Dime Community Bancshares, Inc. (NASDAQ:DCOM) to get a better sense of its popularity.

At the moment there are a lot of gauges stock traders employ to appraise their stock investments. Some of the less utilized gauges are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the elite money managers can outclass the market by a very impressive margin (see the details here).

Keeping this in mind, let’s take a look at the new action encompassing Chegg Inc (NYSE:CHGG).

What have hedge funds been doing with Chegg Inc (NYSE:CHGG)?

At the end of the third quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of -25% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, PAR Capital Management, managed by Paul Reeder and Edward Shapiro, holds the most valuable position in Chegg Inc (NYSE:CHGG). PAR Capital Management has a $57.7 million position in the stock, comprising 1.2% of its 13F portfolio. Coming in second is Act II Capital, managed by Dennis Leibowitz, which holds a $6.2 million position; 3.2% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that are bullish comprise Daniel Benton’s Andor Capital Management, Jim Simons’s Renaissance Technologies and Mark N. Diker’s Diker Management.