Canaccord Genuity analyst Jason Tilchen has maintained their neutral stance on NRDY stock, giving a Hold rating today.
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Jason Tilchen has given his Hold rating due to a combination of factors impacting Nerdy’s financial performance and growth prospects. The company reported mixed results in the third quarter, with revenue falling short of expectations, although the adjusted EBITDA loss was narrower than anticipated. This was largely due to technical debt issues that slowed product development and delayed key product launches, which hindered the company’s ability to capitalize on the back-to-school period.
Despite these challenges, Nerdy has made strides in rebuilding its technology infrastructure, which has shown promise in enhancing user experience and accelerating product innovation. However, the outlook for the fourth quarter remains subdued, with revenue and adjusted EBITDA projections falling below market expectations. The decrease in active members and funding delays affecting institutional revenue contribute to this cautious outlook. Given these factors, Jason Tilchen maintains a Hold rating until there is clear evidence of sustained revenue growth and improved profitability.
In another report released today, Barclays also maintained a Hold rating on the stock with a $3.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NRDY in relation to earlier this year.