Chegg jumps after Galloway takes stake

Chegg

08/04/2026 18:20

** Online learning platform Chegg's RIC shares rise 21% to $0.88

** Galloway Capital takes a 5.44% stake

** "We believe Chegg is materially undervalued and that the current share price reflects a fundamental misunderstanding of the business," says Bruce Galloway, chief investment officer of Galloway Capital Partners

** The investment firm backs management's turnaround efforts and says separating Chegg's business units could unlock shareholder value

** Galloway says the company's Skilling segment generates about $72 million in annualized revenue and addresses a $40 billion market, with potential for sustained double‑digit growth

** It adds that the legacy Academic Services business is expected to generate meaningful cash flow that is not reflected in the company's current valuation

** Up to last close, stock has fallen more than 5% YTD

 (Reporting by Kritika Lamba in Bengaluru)

 ((Kritika.Lamba@thomsonreuters.com))