Charles K. Cohn, Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), has purchased a significant amount of the company's stock, according to a recent SEC filing. On November 19, Cohn acquired 1,501,500 shares of Nerdy Inc.'s Class A Common Stock at a weighted average price of $1.21 per share, totaling approximately $1.82 million. This transaction was executed through the Cohn Family Trust U/A/D 3/16/2017.
Following this purchase, Cohn's indirect ownership, including shares held by various trusts and entities, increased to a substantial number. The filing also highlights Cohn's direct ownership, which remains significant, demonstrating his continued confidence in the company's future prospects.
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 this, the company saw an increase in active members and was able to generate $31.4 million from its Consumer Learning Memberships, accounting for 84% of total revenue. However, institutional business revenue declined by 3% year-over-year to $5.4 million.
Nerdy's management, in response to these developments, is focusing on promoting higher frequency memberships and has expanded its reach by providing free access to Varsity Tutors for Schools for an additional 1.1 million students. Canaccord Genuity, however, adjusted its outlook on Nerdy, reducing the price target to $2.50 from the previous $3.00, while keeping a Hold rating on the stock.
Looking ahead, Nerdy anticipates Q4 revenue to be between $44 million and $47 million, with full-year revenue estimates ranging from $186 million to $189 million. Adjusted EBITDA for Q4 is expected to range from a loss of $7 million to a loss of $10 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 substantial stock purchase aligns with several key insights from InvestingPro. Nerdy Inc. (NYSE:NRDY) has shown impressive gross profit margins, with the latest data indicating a 68.78% margin for the last twelve months as of Q3 2024. This strong profitability metric suggests that the company maintains efficient operations despite challenging market conditions.
Additionally, an InvestingPro Tip reveals that Nerdy holds more cash than debt on its balance sheet, which could be a factor in Cohn's decision to increase his stake. This financial stability is further supported by another tip indicating that the company's liquid assets exceed short-term obligations, potentially providing a cushion for future growth initiatives.
However, investors should note that Nerdy has experienced significant price volatility, with the stock price falling 47.83% over the past year. Despite this, the company has shown a strong return of 57.05% over the last week and 32% over the last month, which may have influenced Cohn's timing for his purchase.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Nerdy Inc., providing a comprehensive view of the company's financial health and market position.
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