ST. LOUIS—Charles K. Cohn, the Chief Executive Officer of Nerdy Inc. (NYSE:NRDY), recently expanded his stake in the company by acquiring a significant number of shares amid the stock’s strong 11% gain over the past week. According to a recent SEC filing, Cohn purchased 300,000 shares of Class A Common Stock, with the transactions executed at a weighted average price of $1.78 per share. This acquisition, valued at approximately $534,000, was made through two separate trusts: the Cohn Family Trust 5/24/18 and the Cohn Family Investments Trust dtd 5/24/18. InvestingPro analysis shows the company maintains strong gross profit margins of nearly 69%.
Following these transactions, Cohn’s direct and indirect holdings in Nerdy Inc. have increased substantially. The CEO now holds 700,333 shares through the Cohn Family Trust and 660,704 shares through the Cohn Family Investments Trust. Additionally, Cohn maintains significant indirect ownership through other entities, including Rarefied Air Capital LLC, which is associated with multiple family trusts. The company’s financial position appears stable, with InvestingPro data showing more cash than debt on its balance sheet and a healthy current ratio of 2.18.
These strategic acquisitions underscore Cohn’s confidence in Nerdy Inc.’s future prospects. As the company continues to navigate the educational services sector, these transactions may reflect the CEO’s commitment to aligning his interests with those of the shareholders. According to InvestingPro‘s Fair Value analysis, the stock currently appears undervalued, with 12 additional exclusive ProTips available for subscribers.
In other recent news, education technology company Nerdy Inc. reported a mixed bag of results in its third-quarter earnings. Despite a 7% decline in year-over-year revenue, totaling $37.5 million, the company expanded its reach, providing free access to Varsity Tutors for an additional 1.1 million students. This move is part of a broader shift towards institutional growth, with 32% of paid contracts and 22% of total bookings coming from school districts transitioning from free to paid services.
In a recent development, Nerdy Inc. regained compliance with the New York Stock Exchange’s minimum share price requirement, a significant milestone for the company. The compliance ensures the continued listing of Nerdy’s Class A Common Stock on the NYSE, subject to adherence to other NYSE listing standards.
On the analyst front, Canaccord Genuity adjusted its outlook on Nerdy, reducing the price target while maintaining a Hold rating on the stock. The firm anticipates some of Nerdy’s current challenges will continue into the first half of 2025, but foresees an improvement in fundamentals over the next year. This sets a solid foundation for growth starting in fiscal year 2026. These recent developments reflect Nerdy Inc.’s commitment to navigating market challenges and focusing on sustainable growth.
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