Chegg stock rises after major repurchase announcement
- Chegg announces $150 million accelerated share repurchase with Morgan Stanley Bank
- Chegg stock rises 2.6% premarket after announcement
- Chegg will make an initial payment of $150 million for 13.5 million shares
- Final number of shares based on average price during the term of the ASR
- $3.7 million will remain available after the ASR
- Chegg stock has fallen 65% in the year to date
Education company Chegg Inc. has announced a $150 million accelerated share repurchase agreement with Morgan Stanley Bank N.A. This news has caused Chegg stock to rise 2.6% premarket. Under the agreement, Chegg will make an initial payment of $150 million in return for 13.5 million shares of its common stock by November 15. The final number of shares will be determined based on the average price of the stock during the term of the accelerated share repurchase (ASR). As of October 31, Chegg had $153.7 million remaining from its previously announced $2.2 billion share buyback program, with $3.7 million still available after the ASR. However, the stock has experienced a significant decline of 65% year to date, in contrast to the 17% gain of the S&P 500.
Factuality Level: 8
Factuality Justification: The article provides factual information about Chegg Inc.’s stock and its announcement of a $150 million accelerated share repurchase with Morgan Stanley Bank N.A. It also mentions the remaining amount of a previously announced share buyback program and the stock’s performance in the year to date compared to the S&P 500. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. It does not include any digressions, unnecessary background information, or details tangential to the main topic. The reporting appears to be accurate and objective without any bias or personal perspective presented as universally accepted truth. There are no invalid arguments, logical errors, inconsistencies, fallacies, faulty reasoning, false assumptions, or incorrect conclusions. Overall, the article provides factual information about Chegg Inc.’s stock and its recent announcement.
Noise Level: 3
Noise Justification: The article provides information about Chegg Inc.’s stock and its recent announcement of a $150 million accelerated share repurchase with Morgan Stanley Bank. It also mentions the remaining amount of a previously announced share buyback program. However, the article lacks analysis, evidence, or insights into the long-term trends or consequences of these actions. It also does not provide any actionable insights or solutions for the reader. Overall, the article is mostly focused on reporting the stock movement and lacks depth or relevance to broader topics.
Financial Relevance: Yes
Financial Markets Impacted: Chegg Inc. stock (CHGG)
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article pertains to the financial topic of Chegg Inc.’s stock and its share repurchase program with Morgan Stanley Bank. There is no mention of an extreme event or its impact.
Public Companies: Chegg Inc. (CHGG), Morgan Stanley Bank N.A. (undefined)
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