Yahoo Finance One Nerdy Insider Raised Their Stake In The Previous Year
From what we can see, insiders were net buyers in Nerdy, Inc.'s (NYSE:NRDY ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Nerdy
Nerdy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder Charles Cohn for US$196k worth of shares, at about US$2.88 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.71). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Charles Cohn was the only individual insider to buy shares in the last twelve months.
Charles Cohn bought 398.42k shares over the last 12 months at an average price of US$3.70. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Nerdy Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Nerdy recently. In that time, insiders dumped US$389k worth of shares. Meanwhile Founder Charles Cohn bought US$196k worth. We don't view these transactions as a positive sign.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Nerdy insiders own about US$42m worth of shares. That equates to 8.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Nerdy Insiders?
The stark truth for Nerdy is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nerdy. While conducting our analysis, we found that Nerdy has 3 warning signs and it would be unwise to ignore these.
Of course Nerdy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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This 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.
