Charles K. Cohn, the Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), recently acquired additional shares of the company. According to a recent SEC filing, Cohn purchased 22,303 shares of Nerdy Inc.'s Class A Common Stock on November 15, 2024. The shares were bought at a weighted average price of $0.90 per share, totaling approximately $20,072. This acquisition was made indirectly through the Cohn Family Trust U/A/D 3/16/2017.
Following this transaction, Cohn's total indirect ownership through various trusts and entities stands at 21,179,953 shares, with additional direct ownership of 9,258,298 shares. This move reflects Cohn's continued investment in Nerdy Inc., a company known for its educational services.
In other recent news, Nerdy, Inc. reported mixed results for the third quarter of 2024, with a 7% decline in year-over-year revenue, totaling $37.5 million. Despite an increase in active members, the company experienced a decrease in consumer revenue due to challenges with its Learning Membership offerings. Canaccord Genuity (TSX:CF) adjusted its outlook on Nerdy, reducing the price target while maintaining a Hold rating. The firm anticipates gradual improvement for Nerdy by fiscal year 2026, expecting several quarters for the company to return to a growth trajectory. The company's strategic shift towards institutional growth is showing promise, with significant bookings coming from school districts transitioning from free to paid services. Looking ahead, Nerdy expects Q4 revenue to be between $44 million and $47 million, with full-year revenue estimates ranging from $186 million to $189 million. These recent developments indicate the company's commitment to navigating market challenges and focusing on sustainable growth.
InvestingPro Insights
Charles K. Cohn's recent purchase of Nerdy Inc. (NYSE:NRDY) shares aligns with several key metrics and insights from InvestingPro. The company's stock has experienced significant volatility, with a notable return of 11.11% over the last week, despite a 50.98% decline over the past six months. This recent uptick could be seen as a potential opportunity by insiders like Cohn.
InvestingPro data reveals that Nerdy Inc. has a market capitalization of $180.38 million and impressive gross profit margins of 68.78% for the last twelve months as of Q3 2024. This strong margin suggests efficient cost management in its core operations, which could be attractive to investors.
An InvestingPro Tip highlights that Nerdy holds more cash than debt on its balance sheet, indicating financial stability. This could be a factor in Cohn's decision to increase his stake, as it provides a cushion during periods of market volatility or potential expansion.
However, it's worth noting that another InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This aligns with the reported operating income margin of -33.41% for the last twelve months as of Q3 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Nerdy Inc., providing a deeper understanding of the company's financial health and market position.
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