This Insider Has Just Sold Shares In Nerdy

Anyone interested in Nerdy, Inc. (NYSE:NRDY) should probably be aware that the Chief Financial Officer, Jason Pello, recently divested US$146k worth of shares in the company, at an average price of US$1.80 each. On the bright side, that sale was only 8.8% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Nerdy

The Last 12 Months Of Insider Transactions At Nerdy

Over the last year, we can see that the biggest insider purchase was by Founder Charles Cohn for US$9.7m worth of shares, at about US$0.91 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.66. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 34.53m shares for US$40m. But they sold 504.66k shares for US$835k. In the last twelve months there was more buying than selling by Nerdy insiders. The average buy price was around US$1.17. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does Nerdy Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 27% of Nerdy shares, worth about US$80m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Nerdy Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Nerdy insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nerdy. You'd be interested to know, that we found 2 warning signs for Nerdy and we suggest you have a look.

But note: Nerdy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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) simplywallst.com.

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.