Chegg gains on insider buy

|By:, SA News Editor

Director/ex-Netflix CFO Barry McCarthy bought 30K Chegg (CHGG +5.1%) shares on Tuesday at $6.38. (Form 4)

The purchase comes a month after Chegg sold off in response to the light margin/EBITDA guidance it provided with its Q4 results, as the company tries to offset weakness in its traditional/high-margin textbook rental business by growing its digital revenue streams.

SA contributor Diamond Capital is a believer in Chegg's ability to pull off the transition, arguing this morning shares could eventually double.