Shares of Nerdy (NYSE:NRDY) are in the spotlight following a massive 5 million share purchase by CEO Charles Cohn. Nerdy operates as an online platform for live learning that leverages artificial intelligence (AI) to personalize learning lessons for individual users. The platform offers more than 3,000 subjects in one-on-one or group classes.
During the second quarter, Nerdy raked in $42.2 million of revenue, up 29% year-over-year (YOY) and beating the previously issued guidance of between $37 million and $40 million. On top of that, online sessions rose 35% YOY, while active learners increased by 36%.
Meanwhile, Nerdy carries no debt and has $121 million of cash on its balance sheet. The company expects to achieve adjusted earnings before interest, taxes, deductions and amortizations (EBITDA) profitability by 2023.
With that in mind, let’s get into the details of Cohn’s purchase.
NRDY Stock: CEO Charles Cohn Purchases 5 Million Shares
On Aug. 20, Cohn purchased 5 million shares of NRDY at an average price of $3.50 per share. The shares were indirectly purchased by Rarefied Air Capital, which is owned by three of Cohn’s family trusts.
However, there may be a caveat behind the recent purchase. On the same day that Cohn purchased the shares, hedge fund Light Street Capital also sold 5 million shares at an average price of $3.50 per share. There is no mention of a share swap in either of the filings that depict the sales nor on Nerdy’s investor relations page. Still, it seems likely that a share swap occurred, as both the sales and purchases were enacted at the same prices in the same amount on the same day.
With Cohn upping his stake, let’s take a look at other investors betting big on the learning platform.
Who Else Is Betting Big on Nerdy?
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During Q2, 77 funds reported owning NRDY, a decline of two funds from the prior quarter. Meanwhile, 24 funds opened a new position during the quarter, while 25 funds completely sold out. So, who are Nerdy’s largest shareholders?
- Charles Cohn, CEO: 52.35 million shares.
- TCV VIII: 21.65 million shares. TCV’s position is accurate as of Q3 of 2021.
- TPG Pace Tech Opportunities Sponsor: 18.74 million shares. TPG’s position is accurate as of Q4 of 2021.
- TPG GP: 13.22 million shares.
- Robert Hutter, director: 8.89 million shares. Hutter’s position is accurate as of Q4 of 2021.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
