Advertisement|Remove ads.

Chegg Inc. (CHGG) shares soared nearly 16% in Wednesday morning’s trade after the company disclosed a letter from one of its significant shareholders, Galloway Capital Partners.
According to the letter addressed to Chegg CEO Dan Rosensweig, Galloway Capital stated that CHGG’s current price reflects a “substantial disconnect” from intrinsic value.
“At present levels, the market appears to be incorrectly pricing the business as though it is in financial distress. The Company maintains a strong balance sheet, is expected to exit the year with net cash and no debt, and, in our view, has no credible risk of financial distress,” Galloway Capital stated in its letter.
Retail sentiment on Stocktwits around Chegg trended in the ‘bullish’ territory at the time of writing.
Get updates to this developing story directly on Stocktwits.
For updates and corrections, email newsroom[at]stocktwits[dot]com.