Pello Jason H., the Chief Financial Officer of Nerdy Inc. (NYSE:NRDY), recently sold 70,490 shares of Class A Common Stock in an open market transaction. The shares were sold at an average price of $1.06 each, totaling approximately $74,719. This sale was conducted to cover taxes due from the vesting of 164,930 restricted stock units, as part of the company's sell-to-cover program. Following the transaction, Jason holds 724,730 shares of Class A Common Stock and 1,530,698 restricted stock units.
In other recent news, Nerdy, Inc. reported mixed results for its 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's Consumer Learning Memberships generated $31.4 million, accounting for 84% of total revenue. However, institutional business revenue declined by 3% year-over-year to $5.4 million. In response to these results, Canaccord Genuity adjusted its outlook on Nerdy, reducing the price target to $2.50 from the previous $3.00, while maintaining a Hold rating on the stock. Canaccord anticipates that some of Nerdy's challenges will persist into the first half of 2025, but expects an improvement in fundamentals over the next year. For the fourth quarter, Nerdy anticipates revenues and adjusted EBITDA significantly below market expectations, but projects a recovery in active Consumer platform members in the first half of 2025. These recent developments reflect the company's commitment to addressing market challenges and focusing on sustainable growth.
InvestingPro Insights
The recent insider transaction at Nerdy Inc. (NYSE:NRDY) comes at a time when the company's financial metrics paint a complex picture. According to InvestingPro data, Nerdy's market capitalization stands at $227.28 million, reflecting its position in the educational technology sector. Despite the recent sell-off by the CFO, the company's stock has shown remarkable short-term performance, with a 52.57% return over the past week and a 21.36% return over the last month.
However, these gains should be viewed in the context of longer-term challenges. InvestingPro Tips highlight that Nerdy's stock price has fallen significantly over the last year, with a one-year price total return of -50.2%. This volatility is further emphasized by the fact that the stock is trading at only 34.72% of its 52-week high.
On the financial front, Nerdy boasts impressive gross profit margins, with the latest data showing a 68.78% gross profit margin for the last twelve months. This strength is complemented by the company's solid balance sheet, as InvestingPro Tips indicate that Nerdy holds more cash than debt and its liquid assets exceed short-term obligations.
Despite these positives, investors should note that Nerdy is not currently profitable, with a negative operating income margin of -33.41% over the last twelve months. This aligns with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.
For readers interested in 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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