With 41% ownership in Nerdy, Inc. (NYSE:NRDY), insiders continue to have the largest holding even though they have sold shares recently

Yahoo

17-03-2025

Significant insider control over Nerdy implies vested interests in company growth
A total of 5 investors have a majority stake in the company with 52% ownership
Recent sales by insiders
If you want to know who really controls Nerdy, Inc. (NYSE:NRDY), then you'll have to look at the makeup of its share registry. With 41% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And insiders own the top position in the company's share registry despite recent sales.
In the chart below, we zoom in on the different ownership groups of Nerdy.
Check out our latest analysis for Nerdy
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Nerdy. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Nerdy's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Nerdy. With a 38% stake, CEO Charles Cohn is the largest shareholder. In comparison, the second and third largest shareholders hold about 4.4% and 3.5% of the stock.
Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of Nerdy, Inc.. It has a market capitalization of just US$285m, and insiders have US$117m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nerdy. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Nerdy , and understanding them should be part of your investment process.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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