Galloway Capital Partners LLC announced it has acquired approximately 5.44% ownership in Chegg Inc. (NYSE: CHGG), according to a press release statement.

The Miami-based investment firm filed a Schedule 13D with the Securities and Exchange Commission documenting the stake acquisition. Galloway expressed support for Chegg management's efforts to restructure the business and suggested that separating the company's business units could create shareholder value.

"We believe Chegg is materially undervalued and that the current share price reflects a fundamental misunderstanding of the business," said Bruce Galloway, Chief Investment Officer of Galloway Capital Partners.

According to the press release, Chegg's Skilling segment generates approximately $72 million in annualized revenue within what the firm estimates as a $40 billion addressable market. Galloway stated the company's Academic Services business is positioned to generate cash flow over the coming years.

The investment firm indicated it plans to engage with Chegg's management team and board of directors regarding opportunities to enhance shareholder value. Galloway Capital Partners describes itself as focusing on identifying undervalued public companies trading below intrinsic value through a research-driven approach.

The filing details are available through the SEC's public database as of the April 8, 2026 submission date referenced in the announcement.