Charles K. Cohn, the Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), recently acquired a significant number of shares in his company. According to a recent SEC filing, Cohn purchased 421,796 shares of Nerdy Inc.'s Class A Common Stock. The shares were acquired at a weighted average price of $1.40 per share, with the transactions occurring at prices ranging from $1.38 to $1.40. This purchase amounts to a total investment of approximately $590,514.
Following this transaction, Cohn now holds a substantial number of shares across various trusts and personal accounts. His post-transaction holdings include 24,782,433 shares owned through the Cohn Family Trust, 510,704 shares through the Cohn Family Investments Trust, and 13,025,870 shares through Rarefied Air Capital LLC. Additionally, a portion of his holdings, amounting to 9,258,298 shares, represents Restricted Stock Units (RSUs) issued under Nerdy Inc.'s 2021 Equity Incentive Plan, which are subject to vesting conditions based on the company's future stock price performance.
Cohn's acquisition of shares indicates a strong vote of confidence in Nerdy Inc.'s future prospects. Nerdy Inc., headquartered in St. Louis, Missouri, is engaged in providing educational services and continues to focus on its growth and strategic objectives.
In other recent news, Nerdy, Inc. faced a mix of outcomes in the third quarter of 2024. The company surpassed its recently adjusted expectations for revenue and profitability, but experienced a decline in consumer revenue due to challenges with its Learning Membership offerings. Canaccord Genuity has adjusted its outlook on Nerdy, reducing the price target while maintaining a Hold rating.
Nerdy's third-quarter earnings report revealed a 7% decline in year-over-year revenue, totaling $37.5 million, despite an increase in active members. Institutional business revenue, however, declined by 3% year-over-year to $5.4 million. 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. 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 purchase of Nerdy Inc. (NYSE:NRDY) shares aligns with several interesting insights from InvestingPro. The company's stock has shown impressive short-term performance, with InvestingPro data indicating a 46.32% price return over the past month and a 26.36% return over the last three months. This recent momentum could be a factor in Cohn's decision to increase his stake.
However, investors should note that Nerdy's financials present a mixed picture. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability. Additionally, Nerdy boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 68.78% for the last twelve months as of Q3 2023.
Despite these strengths, it's important to consider that analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip. This aligns with the reported operating income margin of -33.41% for the same period.
For investors seeking 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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