Insider Buying: The Nerdy, Inc. (NYSE:NRDY) Chief Financial Officer Just Bought 5.7% More Shares

Even if it's not a huge purchase, we think it was good to see that Jason Pello, the Chief Financial Officer of Nerdy, Inc. (NYSE:NRDY) recently shelled out US$50k to buy stock, at US$1.86 per share. Although the purchase is not a big one, increasing their shareholding by only 5.7%, it can be interpreted as a good sign.

Check out our latest analysis for Nerdy

The Last 12 Months Of Insider Transactions At Nerdy

The Founder Charles Cohn made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$4.52 each. That means that even when the share price was higher than US$2.10 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Nerdy insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership of Nerdy

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$2.8m worth of Nerdy stock, about 0.8% of the company. We prefer to see high levels of insider ownership.

So What Do The Nerdy Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Nerdy insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Nerdy that deserve your attention before buying any shares.

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, but not derivative transactions.

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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.