Weiss Ratings Reiterates "Sell (E+)" Rating for Nerdy (NYSE:NRDY)

Key Points

• Weiss Ratings has reiterated a "Sell (E+)" rating for Nerdy (NYSE:NRDY), indicating continued skepticism about the company's stock performance.
• Nerdy's stock has seen a significant drop in target price forecasts, with Cantor Fitzgerald lowering it from $1.75 to $1.50 and Wall Street Zen also moving from a "hold" to a "sell" rating.
• The company reported a negative net margin of 24.91% and a negative return on equity of 77.11%, highlighting potential financial difficulties ahead.

Nerdy (NYSE:NRDY - Get Free Report)'s stock had its "sell (e+)" rating restated by Weiss Ratings in a research report issued on Saturday,Weiss Ratings reports.

Other equities research analysts have also issued research reports about the stock. Wall Street Zen lowered shares of Nerdy from a "hold" rating to a "sell" rating in a research note on Friday, September 5th. Cantor Fitzgerald dropped their price objective on shares of Nerdy from $1.75 to $1.50 and set a "neutral" rating on the stock in a research note on Friday, August 8th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $1.75.

Nerdy Price Performance

Shares of NYSE NRDY opened at $1.15 on Friday. Nerdy has a 1 year low of $0.75 and a 1 year high of $2.18. The company's 50-day moving average is $1.27 and its 200 day moving average is $1.48. The stock has a market capitalization of $212.74 million, a P/E ratio of -2.94 and a beta of 1.84.

Nerdy (NYSE:NRDY - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.03. Nerdy had a negative net margin of 24.91% and a negative return on equity of 77.11%. The company had revenue of $45.26 million for the quarter, compared to analysts' expectations of $46.60 million. Nerdy has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Research analysts anticipate that Nerdy will post -0.43 earnings per share for the current year.

Insider Transactions at Nerdy

In other news, CFO Jason H. Pello sold 52,866 shares of the company's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $1.27, for a total value of $67,139.82. Following the transaction, the chief financial officer owned 1,877,738 shares in the company, valued at approximately $2,384,727.26. This represents a 2.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Abigail Blunt acquired 25,000 shares of the firm's stock in a transaction dated Friday, August 29th. The shares were bought at an average cost of $1.36 per share, with a total value of $34,000.00. Following the completion of the acquisition, the director directly owned 226,000 shares of the company's stock, valued at $307,360. The trade was a 12.44% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 139,853 shares of company stock worth $177,613. Corporate insiders own 50.94% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Franklin Resources Inc. raised its holdings in shares of Nerdy by 0.4% during the second quarter. Franklin Resources Inc. now owns 3,650,255 shares of the company's stock valued at $5,950,000 after purchasing an additional 15,674 shares during the last quarter. GSA Capital Partners LLP purchased a new position in shares of Nerdy during the first quarter valued at approximately $649,000. Nuveen LLC purchased a new position in shares of Nerdy during the first quarter valued at approximately $508,000. Bank of New York Mellon Corp raised its holdings in shares of Nerdy by 8.0% during the first quarter. Bank of New York Mellon Corp now owns 223,757 shares of the company's stock valued at $318,000 after purchasing an additional 16,613 shares during the last quarter. Finally, Marshall Wace LLP purchased a new position in shares of Nerdy during the second quarter valued at approximately $221,000. 39.10% of the stock is owned by hedge funds and other institutional investors.

Nerdy Company Profile

Nerdy, Inc operates platform for live online learning. The company's purpose-built proprietary platform leverages technology, including artificial intelligence to connect students, users, parents, guardians, and purchasers of various ages to tutors, instructors, subject matter experts, educators, and other professionals, delivering value on both sides of the network.

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