In a recent transaction, Samuel Yount, Chief Business Officer of NerdWallet, Inc. (NASDAQ:NRDS), sold a significant number of shares in the company. According to a filing with the Securities and Exchange Commission, Yount disposed of a total of 147,526 shares of NerdWallet's Class A Common Stock over two days, December 13 and December 16, 2024. The sale comes as the company, currently valued at approximately $989 million, has seen its stock decline by nearly 8% over the past week, according to InvestingPro data.
The shares were sold at a weighted average price ranging from $13.39 to $13.40 per share, totaling approximately $1.98 million. The transactions were executed as part of a pre-established trading plan under Rule 10b5-1, which Yount adopted in September 2024. Despite the insider sale, InvestingPro analysis suggests the stock is currently trading below its Fair Value, with the company maintaining a strong financial health rating and an impressive 90% gross profit margin.
Following these transactions, Yount retains ownership of 1,519,351 shares, which includes 506,424 restricted stock units payable solely in Class A Common Stock. The sales were conducted through trusts and an LLC, as noted in the filing. For investors seeking deeper insights, InvestingPro offers additional exclusive tips and a comprehensive research report on NerdWallet, among its coverage of 1,400+ US stocks.
In other recent news, NerdWallet reported a substantial 25% year-over-year revenue increase, reaching $191 million in Q3 2024, despite facing hurdles in the lending market. The company witnessed significant expansion in its insurance segment with a 916% revenue rise, and a 12% growth in small- and medium-sized business revenues. However, NerdWallet also faced declines in credit card and loan segments by 16% and 28% respectively.
NerdWallet anticipates a revenue boost in the upcoming quarter, attributing it to its recent acquisition of Next (LON:NXT) Door Lending. According to the company's projections, Q4 revenue is expected to fall between $164 million and $172 million, indicating a 26% year-over-year growth. The company, led by CEO Tim Chen and CFO Lauren StClair, remains optimistic about long-term growth, backed by a focus on vertical integration and the launch of a new membership offering, NerdWallet+.
These recent developments show NerdWallet's resilience in a fluctuating market, leveraging growth in its insurance and SMB segments. Despite setbacks in credit card and loan revenues, the company's proactive measures, including workforce reductions and a new share repurchase authorization, aim to bolster financial stability. With a continuous focus on user engagement and market adaptability, NerdWallet is positioning itself to navigate market challenges and maintain its trajectory of revenue growth.
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