NerdWallet, Inc. (NASDAQ:NRDS) Vice President and General Manager Samuel Yount has sold a total of 12,500 shares of company stock, valued at over $186,000, according to recent SEC filings. The transactions, which took place on July 2nd and 3rd, were executed at weighted average prices between $14.66 and $15.04 per share.
On July 2nd, Yount sold 5,000 shares at an average price of $14.66, with sales prices ranging from $14.45 to $14.90. The following day, an additional 7,500 shares were sold at an average price of $15.04, with individual transactions priced from $15.00 to $15.14. These sales were conducted under a Rule 10b5-1 trading plan, which Yount had adopted on February 20, 2024.
Following these transactions, Yount's direct holdings in NerdWallet are reported to be 2,334,471 shares. It is noted that this total includes 512,508 Restricted Stock Units (RSUs) that are payable solely in Class A Common Stock of the issuer. The shares are held indirectly by The Yount Family Revocable Trust, for which Yount serves as the trustee.
This series of transactions reflects a significant change in Yount's position in the company, providing investors with insights into executive stock moves at NerdWallet. The company, which specializes in providing financial guidance through its website and app, has its shares publicly traded on the NASDAQ stock exchange under the ticker symbol NRDS.
Investors and analysts often monitor insider buying and selling as it can provide valuable signals about the company's financial health and future prospects. The recent sales by a high-ranking executive at NerdWallet will likely be of interest to current and potential shareholders as they assess their investment in the company.
In other recent news, NerdWallet reported a 5% year-over-year decline in Q1 2024 revenue, falling to $162 million, despite a significant increase of 25% in monthly unique users. The company's non-GAAP operating income more than doubled, and the company is concentrating on long-term growth and efficiency. NerdWallet's credit card and emerging verticals segments experienced declines, while its SMB products segment saw growth. The company anticipates a return to double-digit revenue growth in the second half of the year. These developments are part of NerdWallet's recent activities. As part of its future plans, NerdWallet aims for double-digit revenue growth in the second half of 2024 and maintains full-year non-GAAP OI margin guidance of approximately 6.5% to 8%. Despite the current revenue dip, the company's user base expansion and strategic investments suggest a positive outlook for the coming months.
InvestingPro Insights
As investors digest the recent insider selling at NerdWallet, Inc. (NASDAQ:NRDS), it's important to consider the broader financial context of the company. According to InvestingPro data, NerdWallet has a market capitalization of $1.16 billion. Despite a challenging period, the company has maintained a substantial gross profit margin of 90.81% over the last twelve months as of Q1 2024. This indicates that while NerdWallet's earnings are currently negative, with a P/E ratio of -80.09, the company is generating a significant amount of revenue relative to the cost of goods sold.
An InvestingPro Tip highlights that NerdWallet is expected to see net income growth this year, which could suggest a potential turnaround in profitability. This is in line with analysts' predictions that the company will be profitable this year. Additionally, NerdWallet's liquid assets exceed its short-term obligations, implying a strong liquidity position that may reassure investors of the company's ability to meet its short-term liabilities.
Over the past year, NerdWallet has seen a high return, with a one-year price total return of 60.04%. This performance metric could be of particular interest to investors considering the recent insider transactions. While the company does not currently pay a dividend, the focus for shareholders may be on capital appreciation as reflected in the stock's positive price momentum.
For those looking to delve deeper into NerdWallet's financials and future prospects, InvestingPro offers a wealth of additional tips and metrics. Utilize coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to these valuable insights. There are currently 5 more InvestingPro Tips available for NerdWallet, which can be found at https://www.investing.com/pro/NRDS.
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