Nerdy (NYSE: NRDY shareholders take further losses as stocks fall 13% this week, bringing year-over-year losses to 65%

The nature of investing is that you win it and you lose it. Unfortunately, the shareholders of Ringard, Inc. (NYSE: NRDY) have experienced stock price declines over the past year. The share price fell 65% during this time. Because Nerdy has not been listed for many years, the market is still learning how the business operates. In addition, it has fallen by 60% in about a quarter. It’s not a lot of fun for the holders.

Since Nerdy has lost $ 98 million of its value in the past 7 days, let’s see if the longer term decline was caused by the economy of the company.

Check out our latest review for Nerdy

Since Nerdy hasn’t made a profit in the past twelve months, we’ll focus on revenue growth to get a quick view of its business development. When a business is not making a profit, we generally expect good revenue growth. As you can imagine, rapid revenue growth, when sustained, often leads to rapid profit growth.

Nerdy has increased its turnover by 31% in the past year. It is certainly a respectable rate of growth. Meanwhile, the share price fell 65%, suggesting the market had much higher expectations. It may well be that the company is pretty much on track, but its revenue growth has simply been stunted. For us, it is important to consider when you think a business will become profitable, if you base your assessment on income.

The image below shows how revenue and income have tracked over time (if you click on the image you can see more details).

NYSE: NRDY Profit and Revenue Growth January 7, 2022

It’s good to see that there have been some significant insider buys over the past three months. This is a positive point. That said, we believe earnings and revenue growth trends are even more important factors to consider. You can see what analysts are predicting for Nerdy in this interactive graph of future profit estimates.

A different perspective

Since the market gained 16% last year, nerdy shareholders might be sorry they lost 65%. While the goal is to do better than that, it’s worth remembering that even large, long-term investments sometimes underperform for a year or more. The stock price has continued to fall over the past three months, down 60%, suggesting a lack of investor enthusiasm. Given the relatively short history of this stock, we will remain fairly cautious until we see strong trading performance. It is always interesting to follow the evolution of stock prices over the long term. But to understand Nerdy better, there are many other factors that we need to consider. To this end, you need to know the 2 warning signs we spotted with Nerdy.

There are many other companies in which insiders buy shares. You probably do not want to miss it free list of growing companies that insiders buy.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on the US stock exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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