Latest news with #CharlesCohn
Yahoo
17-03-2025
- Business
- Yahoo
With 41% ownership in Nerdy, Inc. (NYSE:NRDY), insiders continue to have the largest holding even though they have sold shares recently
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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
10-02-2025
- Business
- Yahoo
Bullish Nerdy Insiders Loaded Up On US$40.4m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in Nerdy, Inc. (NYSE:NRDY). This is encouraging because it indicates that insiders are more optimistic about the company's prospects. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether. See our latest analysis for Nerdy The Founder Charles Cohn made the biggest insider purchase in the last 12 months. That single transaction was for US$9.7m worth of shares at a price of US$0.91 each. Even though the purchase was made at a significantly lower price than the recent price (US$1.85), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price. Happily, we note that in the last year insiders paid US$40m for 34.53m shares. But insiders sold 406.95k shares worth US$715k. In total, Nerdy insiders bought more than they sold over the last year. Their average price was about US$1.17. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Nerdy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying. At Nerdy,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought US$24m worth of shares. But insiders only sold shares worth US$211k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 27% of Nerdy shares, worth about US$90m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Nerdy we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Nerdy. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
