Charles K. Cohn, the Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), recently acquired a significant number of the company's shares, according to a filing with the Securities and Exchange Commission. On November 18, Cohn purchased 796,096 shares of Nerdy Inc.'s Class A Common Stock at a weighted average price of $0.98 per share. This transaction, totaling approximately $780,174, was conducted through the Cohn Family Trust.
Following this acquisition, Cohn now holds 21,976,049 shares indirectly through the Cohn Family Trust. Additionally, he possesses other holdings in the company through various trusts and entities, including 510,704 shares via the Cohn Family Investments Trust, 9,258,298 restricted stock units, and 13,025,870 shares through Rarefied Air Capital LLC.
This move highlights Cohn's continued confidence in Nerdy Inc., a company specializing in educational services.
In other recent news, Nerdy, Inc. has reported mixed results for its third-quarter earnings. The company saw a 7% year-over-year decline in revenue, which totaled $37.5 million, despite an increase in active members. Nerdy's Consumer Learning Memberships generated $31.4 million, accounting for 84% of total revenue, while institutional business revenue declined by 3% year-over-year to $5.4 million. Looking ahead, Nerdy anticipates Q4 revenue to be between $44 million and $47 million, with full-year revenue estimates ranging from $186 million to $189 million.
On the analyst front, Canaccord Genuity has 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. This adjustment follows the company's recent earnings report and the anticipation of a temporary drop in active Consumer platform members during the fourth quarter. Canaccord projects an improvement in the company's fundamentals starting in fiscal year 2026. These are recent developments for Nerdy, Inc., as it navigates market challenges and focuses on sustainable growth.
InvestingPro Insights
Charles K. Cohn's recent purchase of Nerdy Inc. (NYSE:NRDY) shares aligns with several key insights from InvestingPro. The company's stock has shown significant volatility, with a strong return of 52.57% over the last week and 21.36% over the last month. This recent upward momentum may have influenced Cohn's decision to increase his stake.
InvestingPro Tips reveal that Nerdy holds more cash than debt on its balance sheet, suggesting a solid financial foundation. This could be particularly reassuring for Cohn as he increases his investment. Additionally, the company boasts impressive gross profit margins, which stood at 68.78% for the last twelve months as of Q3 2023, according to InvestingPro Data.
Despite these positive indicators, it's worth noting that analysts do not anticipate the company will be profitable this year, and it was not profitable over the last twelve months. This context adds weight to Cohn's decision to invest, potentially signaling his long-term belief in the company's prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Nerdy Inc., providing a deeper understanding of the company's financial health and market position.
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