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$128k worth of shares in the company, at an average price of US$1.67 each. On the bright side, that sale was only 7.9% of their holding, so we doubt it's very meaningful, on its own.

Our free stock report includes 2 warning signs investors should be aware of before investing in Nerdy. Read for free now.

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. Even though the purchase was made at a significantly lower price than the recent price (US$1.55), 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.

Over the last year, we can see that insiders have bought 34.18m shares worth US$39m. But they sold 594.42k shares for US$890k. Overall, Nerdy insiders were net buyers during the last year. The average buy price was around US$1.15. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Nerdy

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Nerdy Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Nerdy insiders own 26% of the company, worth about US$79m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

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. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. 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. Every company has risks, and we've spotted 2 warning signs for Nerdy you should know about.

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.