Miami-based Galloway Capital Partners has acquired a 5.44% stake in education technology company Chegg Inc., arguing the shares are substantially undervalued.
"Galloway believes Chegg's current share price reflects a substantial disconnect from its intrinsic value," the firm said in a statement. "At current levels, the market appears to be pricing the Company as though it is in financial distress, a characterization Galloway believes is fundamentally incorrect."
The 5.44% ownership position was disclosed in a filing on April 8, 2026. The move places another activist investor in the ed-tech company, which has seen its stock price decline in recent years amid competition and concerns about the impact of artificial intelligence on its business model.
The investment could pressure Chegg's management to consider strategic changes to boost shareholder value. Investors will be watching for further communication from Galloway on its specific plans for the company. The activist's stake may lead to a push for changes ranging from cost-cutting measures to a potential sale of the company.
This article is for informational purposes only and does not constitute investment advice.
