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ST. LOUIS - Nerdy Inc. (NYSE: NRDY), an education technology company with a market capitalization of $177 million and current share price of $1.53, has successfully regained compliance with the New York Stock Exchange's (NYSE) minimum share price requirement, according to a notification received from the NYSE on December 2, 2024. The company's stock had maintained a closing share price above the $1.00 minimum over a 30-day trading period ending November 29, 2024.
This compliance milestone ensures that Nerdy's Class A Common Stock will continue to be listed on the NYSE, provided it maintains adherence to other NYSE listing standards. The NYSE's standard under Section 802.01C requires listed companies to maintain a minimum average closing share price of $1.00 over any consecutive 30 trading-day period.
The notification from the NYSE marks an end to concerns regarding Nerdy's listing status, which could have been jeopardized by a share price consistently below the designated threshold. The company's ability to meet and sustain the required share price minimum is a positive development for its investors and stakeholders, as it allows for continued trading on one of the world's most prominent stock exchanges. InvestingPro analysis indicates the stock generally trades with high price volatility, maintaining a beta of 1.7.
Nerdy's management has not provided additional commentary on the strategies or operational changes that may have contributed to the stock's improved valuation.
The information provided in this article is based on a press release statement from Nerdy Inc. It is important to note that while the company has expressed intentions regarding its NYSE listing requirements in forward-looking statements, these are subject to various risks and uncertainties. InvestingPro's comprehensive analysis rates Nerdy's overall financial health as 'FAIR', with detailed insights available in the Pro Research Report, which provides deep-dive analysis of 1,400+ top stocks including NRDY. Factors such as the company's operating history, financial performance, and market conditions could affect actual results and should be considered by investors.
Nerdy's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K filed on February 27, 2024, provide further details on the risks and challenges faced by the company. These filings are publicly available and provide a comprehensive overview of the company's financial health and business strategies.
In other recent news, Nerdy, Inc. reported mixed results in its third-quarter earnings, with a 7% decline in year-over-year revenue, totaling $37.5 million. Despite a dip in consumer revenue, the company has expanded its reach by providing free access to Varsity Tutors for an additional 1.1 million students. Canaccord Genuity adjusted its outlook on Nerdy, reducing the price target while maintaining a Hold rating on the stock. The firm anticipates some of Nerdy's current challenges will continue into the first half of 2025, but foresees an improvement in fundamentals over the next year, laying a solid foundation for growth starting in fiscal year 2026. The company's guidance for the fourth quarter indicates revenues and adjusted EBITDA significantly below market expectations. However, average revenue per member is projected to increase gradually. Nerdy, Inc. is also showing promise in institutional growth, with 32% of paid contracts and 22% of total bookings coming from school districts transitioning from free to paid services. These recent developments emphasize the company's commitment to navigating market challenges and focusing on sustainable growth.
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