In a recent transaction, Samuel Yount, the Vice President and General Manager of NerdWallet, Inc. (NASDAQ:NRDS), sold 5,000 shares of the company's stock. The transaction, which took place on August 19, 2024, resulted in a total sale value of over $60,000.
According to the details provided, the shares were sold at a weighted average price of $12.01, with individual sales prices ranging from $12.00 to $12.01. The sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Yount on February 20, 2024.
Following the sale, Yount still holds a substantial number of shares in the company, with his ownership standing at 2,329,471 shares of Class A Common Stock. It's worth noting that this figure includes 512,508 Restricted Stock Units that are payable solely in Class A Common Stock of the issuer.
The transaction was conducted indirectly through The Yount Family Revocable Trust, for which Yount serves as the trustee. This indicates that while Yount is the reporting person, the shares are owned by the trust.
NerdWallet, based in San Francisco, California, operates in the technology sector, providing services related to computer processing and data preparation. As of the latest transaction, the company continues to see activity from its executives in the stock market, providing investors with insights into insider trading patterns.
In other recent news, NerdWallet Inc experienced notable developments. The company's second-quarter 2024 earnings report showed a 5% increase in revenue year-over-year, reaching $151 million. This growth was primarily driven by the insurance business, which witnessed a staggering 196% surge in revenue. Truist Securities, however, revised its price target for NerdWallet, reducing it to $16.00 from $19.00, while maintaining a Buy rating on the stock. This adjustment was a response to recent challenges with Google (NASDAQ:GOOGL)'s algorithm changes impacting NerdWallet's organic traffic.
Despite these challenges, NerdWallet has implemented strategic cost reductions, including workforce reduction, expected to save approximately $30 million annually. The company also launched NerdWallet+, a paid membership program offering personalized financial advice and rewards. Looking ahead, NerdWallet anticipates third-quarter revenue between $172 million and $180 million, with the insurance sector expected to be a key driver of this growth. These recent developments highlight NerdWallet's resilience and strategic adjustments in response to a challenging market environment.
InvestingPro Insights
As investors digest the recent insider sale by Samuel Yount at NerdWallet, Inc. (NASDAQ:NRDS), it's important to consider the company's broader financial landscape. According to real-time metrics from InvestingPro, NerdWallet has a market capitalization of approximately $938.98 million. While the company's P/E ratio stands at a negative -78.55, reflecting its current lack of profitability, the adjusted P/E ratio for the last twelve months as of Q2 2024 is even lower at -94.93, indicating market expectations of future earnings growth.
InvestingPro Tips suggest that NerdWallet is expected to see net income growth this year, despite not having been profitable over the last twelve months, which aligns with the company's negative P/E ratio. Moreover, analysts predict that the company will become profitable this year, providing a potential upside for investors considering the stock's recent poor performance over the last month, with a price total return of -22.61%.
An interesting financial strength to note is that NerdWallet's liquid assets exceed its short-term obligations, which could provide some reassurance to investors about the company's ability to meet its immediate financial commitments. Additionally, while NerdWallet does not pay a dividend, which might be a consideration for income-focused investors, the focus appears to be on capital growth as the company matures.
For those looking to dive deeper into NerdWallet's financials and future prospects, there are additional InvestingPro Tips available, providing a comprehensive analysis for informed investment decisions. Visit the dedicated page for NerdWallet on InvestingPro for further insights.
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