ST. LOUIS—Charles K. Cohn, the Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), recently executed a significant purchase of the company's Class A Common Stock. According to a recent SEC filing, Cohn acquired 300,000 shares at a weighted average price of $1.61 per share, totaling approximately $483,000. The transactions, dated December 12, 2024, were conducted through the Cohn Family Trust and Cohn Family Investments Trust. The purchase price represents a notable discount to the current trading price of $1.90, though the stock has experienced a challenging year with a -44.6% year-to-date return. According to InvestingPro analysis, the company currently shows signs of being undervalued.
Following these transactions, Cohn's direct and indirect holdings have increased substantially. His direct ownership now includes 9,258,298 shares, while indirect holdings under Rarefied Air Capital LLC and various family trusts collectively amount to over 38 million shares. This significant insider commitment comes as the company maintains strong financial health metrics, with InvestingPro data showing impressive gross profit margins of 68.8% and a healthy current ratio of 2.18, indicating solid liquidity.
These acquisitions reflect Cohn's continued confidence in Nerdy Inc., a company known for its educational services. The purchases were made at prices ranging from $1.57 to $1.67 per share. With a market capitalization of $314 million, Nerdy shows promising operational metrics despite current market volatility. Discover more comprehensive insights and 12 additional key tips about NRDY through a InvestingPro subscription, including detailed valuation analysis and growth prospects.
"In other recent news, education technology company Nerdy Inc. has regained compliance with the New York Stock Exchange's minimum share price requirement. This development ensures the continuation of Nerdy's Class A Common Stock listing on the NYSE. In the company's third-quarter earnings report, a 7% decline in year-over-year revenue was observed, totaling $37.5 million. Despite this, Nerdy expanded its reach by providing free access to Varsity Tutors for an additional 1.1 million students. Analyst firm Canaccord Genuity adjusted its outlook on Nerdy, maintaining a Hold rating while reducing the price target. This comes after the firm's anticipation of some of Nerdy's current challenges continuing into the first half of 2025, but an improvement in fundamentals is expected over the next year. These recent developments highlight Nerdy's commitment to navigate market challenges and focus on sustainable growth."
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