Chegg jumps after Galloway takes stake

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