Chegg shares surge 17.78% intraday after announcing $200M stock repurchase boost and exceeding Q2 revenue estimates.

Chegg (NYSE:CHGG) surged 17.78% intraday, driven by the announcement of a $200 million share buyback expansion on August 17, 2023. The move signaled management’s confidence in the stock’s value and attracted institutional investors, including Duality Advisers LP and Sands Capital Management, which increased their positions. While insider selling and negative analyst ratings (e.g., Artisan Partners exiting) created short-term uncertainty, the buyback authorization and strong Q2 2023 earnings results—exceeding revenue estimates and highlighting AI integration—were the primary bullish catalysts. The stock’s rally aligned with positive sentiment around Chegg’s pivot to B2B SaaS and skills training, as noted in restructuring updates under new CEO Nathan Schultz.