Charles K. Cohn, Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), has increased his stake in the company with a significant purchase of Class A Common Stock. According to a recent SEC filing, Cohn acquired 300,000 shares on November 25, 2024, at a weighted average price of $1.44 per share. This transaction, valued at approximately $432,000, was made through the Cohn Family Trust.
Following this acquisition, Cohn holds a substantial number of shares directly and indirectly, reflecting his continued confidence in Nerdy Inc., a provider of educational services. The purchase was executed in multiple transactions with prices ranging from $1.40 to $1.48 per share.
In other recent news, Nerdy, Inc. reported mixed earnings results for the third quarter of 2024, with a 7% decline in year-over-year revenue, totaling $37.5 million. Despite this, the company saw an increase in active members and a strategic shift towards institutional growth, with 32% of paid contracts and 22% of total bookings coming from school districts transitioning from free to paid services. However, Nerdy's institutional business revenue declined by 3% year-over-year to $5.4 million.
These recent developments follow an adjustment in outlook by Canaccord Genuity, which reduced its price target for Nerdy from $3.00 to $2.50, maintaining a Hold rating on the stock. The firm anticipates some of Nerdy's current challenges will continue into the first half of 2025, but foresees an improvement in fundamentals over the next year, laying a solid foundation for growth starting in fiscal year 2026.
For the fourth quarter, Nerdy anticipates revenues and adjusted EBITDA significantly below market expectations, with a projected revenue between $44 million and $47 million. Adjusted EBITDA for Q4 is expected to range from a loss of $7 million to a loss of $10 million. Despite these challenges, the company remains committed 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 positive indicators from InvestingPro. The company's stock has shown impressive short-term performance, with a 17.6% return over the last week and a robust 54.74% return over the past month. This recent momentum may have influenced Cohn's decision to increase his stake.
An InvestingPro Tip highlights that Nerdy holds more cash than debt on its balance sheet, suggesting a strong financial position. This could be particularly reassuring for investors, given that another tip indicates the company is not expected to be profitable this year. The company's impressive gross profit margins, another InvestingPro Tip, further underscore its operational efficiency despite current profitability challenges.
Real-time data from InvestingPro shows Nerdy's market capitalization at $265.16 million, with a revenue of $197.32 million for the last twelve months as of Q3 2024. The company's gross profit margin stands at a healthy 68.78%, reflecting its ability to maintain pricing power in the educational services market.
It's worth noting that InvestingPro offers 13 additional tips for Nerdy Inc., providing a more comprehensive analysis for investors interested in deeper insights into the company's financial health and market position.
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