NRDY

Nerdy($NRDY) CEO Bets $24M on Own Stock Over Two Years...Caution Despite Improving Signs

12/12/2025 13:58

Nerdy($NRDY) CEO Charles Cohn's aggressive stock purchasing pattern over the past two years has caught investors' attention, with over $24 million invested in company shares. The small-cap online education platform company, with a market cap of approximately $259 million, provides personalized online tutoring and learning services. Cohn's buying pattern has been extraordinarily aggressive. In June 2024, when shares traded between $1.50-$1.90, he purchased $3.74 million worth of stock over five consecutive days. More notably, when shares crashed to $0.83 in August 2024, Cohn invested a massive $12.07 million to acquire 13.16 million shares. This goes beyond simple bottom-fishing, demonstrating unwavering conviction in the company's future. The buying continued through November-December 2024. Even as shares rebounded from $0.82 to $1.58, Cohn added another $12+ million. In November-December 2025, he continued his sequential purchasing pattern, bringing his total two-year investment to over $24 million. This represents a substantial portion of his personal wealth bet on his own company. The insider trading pattern reveals an intriguing dynamic. CFO Jason Pello and CLO Christopher Swenson have regularly sold shares, primarily for tax purposes related to restricted stock unit (RSU) vesting. Meanwhile, Director Abigail Blunt made intermittent small purchases. Only the CEO has maintained this aggressively bullish stance. However, Nerdy's business performance remains challenging. Q2 2024 revenue declined 11% year-over-year, with Q1 and Q2 2025 showing 11.4% and 11.2% decreases respectively. Encouragingly, Q3 2025 revenue of $37 million represented only a 1% year-over-year decline, showing signs of improvement. Adjusted EBITDA loss of $10.2 million also beat guidance. The stock chart reveals both investment appeal and risk. After the dramatic August 2024 crash, shares have traded in a $1.27-$1.67 range. Following a peak of $1.94 on January 6, 2025, the stock has corrected and currently trades around $1.30. The success of the company's AI-powered Live Learning Platform 2.0 initiative is crucial. This platform provides personalized learning experiences and reportedly contributes to operational efficiency improvements and margin enhancement. As the online education market undergoes post-pandemic adjustment with only truly competitive players surviving, the success of AI-based differentiation bears watching. Investors must consider whether the CEO's bet will pay off. Cohn purchased shares at an average of around $1.00, while current prices near $1.30 haven't yet generated significant profits. His continued buying suggests long-term conviction in the company's value. Analyst sentiment remains cautious. The consensus rating is 'hold' with a 12-month price target of $2.00, implying approximately 54% upside from current levels. However, achieving this target will require fundamental improvement support. Investors should consider two scenarios. In an optimistic case, successful AI platform transition and revenue decline reversal could drive shares to $2-3 levels, especially if the CEO's massive buying marked the bottom. In a pessimistic scenario, intensifying edtech competition and economic slowdown could further deteriorate performance, potentially pushing shares below $1.00. Those considering Nerdy should balance the CEO's strong conviction and AI differentiation strategy as positive factors against persistent revenue declines and intense industry competition as risk factors.