SAN FRANCISCO—Samuel Yount, the Chief Business Officer of NerdWallet, Inc. (NASDAQ:NRDS), a financial services company with a market capitalization of $955 million, recently sold shares of the company's stock valued at approximately $268,274. According to InvestingPro analysis, the stock currently trades below its Fair Value, with analysts setting price targets ranging from $14 to $20. The transactions, dated December 19, 2024, involved the sale of a total of 21,124 shares of Class A Common Stock at a weighted average price of $12.70 per share.
These sales were executed under a Rule 10b5-1 trading plan, which Yount adopted on September 11, 2024, as disclosed in the filing. The shares were sold in multiple transactions at prices ranging from $12.48 to $13.02. The stock has shown significant volatility over the past year, trading between $10.10 and $17.30, as highlighted in one of several InvestingPro Tips available for this stock.
Following these transactions, Yount holds 402,102 shares indirectly through an LLC and 803,503 shares indirectly through trusts. Additionally, he directly holds 519,351 shares, which include 506,424 restricted stock units payable solely in Class A Common Stock. The company maintains strong liquidity with a current ratio of 2.91, indicating healthy financial positioning.
In other recent news, NerdWallet reported a 25% year-over-year increase in revenue, reaching $191 million in Q3 2024, despite facing market challenges. This growth was largely driven by a remarkable 916% increase in the insurance segment and a 12% rise in small- and medium-sized business (SMB) revenues, totaling $28 million. However, the company also reported declines in credit card and loan segments by 16% and 28% respectively.
These are recent developments for NerdWallet, which also saw a decrease in Monthly Unique Users by 7%, while registered users surpassed 23 million. The company, led by CEO Tim Chen and CFO Lauren StClair, also repurchased 5.8 million shares and announced a new $25 million share repurchase authorization.
NerdWallet anticipates a revenue boost in the upcoming quarter from its acquisition of Next (LON:NXT) Door Lending, contributing 1-2 percentage points to Q4 revenue growth. The company expects Q4 revenue to be between $164 million and $172 million, indicating a 26% year-over-year growth.
Despite challenges in loan originations for SMBs due to elevated rates, the company remains optimistic about its long-term growth. This optimism is backed by a focus on vertical integration, the launch of a new membership offering, NerdWallet+, and the anticipation of $30 million in annualized savings from recent workforce reductions.
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