Christopher C. Swenson, the Chief Legal Officer of Nerdy Inc. (NYSE:NRDY), recently sold 35,000 shares of the company's Class A Common Stock. The shares were sold at a weighted average price of approximately $1.24, resulting in a total transaction value of $43,400. Following the sale, Swenson retains ownership of 1,768,248 shares, which include 793,612 shares of Class A Common Stock and 974,636 Restricted Stock Units. According to the filing, the sale was not due to any disagreement with the company, and Swenson continues in his role as an officer.
"In other recent news, Nerdy, Inc. reported mixed results for the third quarter of 2024. The company reported a 7% decrease in year-over-year revenue, totaling $37.5 million, despite an increase in active members. Canaccord Genuity adjusted its outlook on Nerdy, reducing the price target while keeping a hold rating on the stock. This adjustment followed Nerdy's earnings report and anticipated a gradual improvement by fiscal year 2026. The company's Consumer Learning Memberships generated $31.4 million, accounting for 84% of total revenue. Looking ahead, Nerdy, Inc. anticipates 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 highlight the company's commitment to navigating market challenges and focusing on sustainable growth."
InvestingPro Insights
To provide additional context to Christopher C. Swenson's recent stock sale, let's examine some key financial metrics and insights for Nerdy Inc. (NYSE:NRDY) from InvestingPro.
As of the latest data, Nerdy's market capitalization stands at $238.1 million. The company's revenue for the last twelve months as of Q3 2023 was $197.32 million, with a revenue growth of 9.55% over the same period. This growth, coupled with the company's impressive gross profit margin of 68.78%, suggests that Nerdy has been effective in generating sales and maintaining profitability on its services.
However, it's worth noting that Nerdy is currently not profitable, with an adjusted operating income of -$65.92 million for the last twelve months. This aligns with an InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
Despite the recent insider sale, Nerdy's stock has shown significant momentum in the short term. InvestingPro data reveals a 46.46% return over the last week and a 38.61% return over the last month. This recent performance is reflected in another InvestingPro Tip, which notes that the stock's RSI suggests it may be in overbought territory.
For investors considering Nerdy's financial health, it's encouraging to see that the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors provide some financial stability as the company works towards profitability.
It's important to note that InvestingPro offers 14 additional tips for Nerdy Inc., providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects. These insights can be particularly valuable given the stock's high price volatility, as mentioned in one of the InvestingPro Tips.
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