Nerdy (NRDY) Receives Hold Rating from Canaccord Genuity with $2.50 Price Target

Nerdy (NRDY) received a Hold rating from Canaccord Genuity with a price target of $2.50. The company's shares closed at $1.50. Nerdy has a consensus Hold rating with a price target of $2.50, representing a 66.67% upside. Based on the recent corporate insider activity, sentiment is negative, with 41 insiders selling shares in the past quarter.

Canaccord Genuity has assigned a Hold rating to Nerdy Inc. (NYSE: NRDY) with a price target of $2.50, as reported on July 2, 2025. The stock closed at $1.50, representing a 66.67% upside potential based on the consensus rating and target price. The rating comes amidst a backdrop of negative insider sentiment, with 41 insiders selling shares in the past quarter.

Nerdy, which operates a platform for live online learning, is expected to release its Q2 2025 earnings on August 7th. Analysts forecast earnings of ($0.10) per share and revenue of $46.60 million for the quarter. The company's shares have decreased by 2.8%, trading at $1.54, with a market cap of $280.06 million.

The company's recent insider activity reflects a bearish sentiment. Christopher C. Swenson sold 53,514 shares, and CFO Jason H. Pello sold 76,794 shares, both on May 16th. These sales represent a 3.21% and 3.77% decrease in their respective ownership of the stock. Additionally, institutional investors have made changes to their positions in NRDY. AQR Capital Management LLC grew its position by 67.9%, while Bank of America Corp DE increased its holdings by 41.9%.

Nerdy's strategic pivot toward AI-driven operations and disciplined cost optimization has been a key factor in stabilizing its finances. In Q2 2025, AI tools reduced manual overhead by 16% and boosted average revenue per member to $348. Despite an 11% revenue decline, the company narrowed its EBITDA losses to $2.7M, supported by $36.7M in cash reserves. The company projects revenue of $191–$197M with a $13–$17M EBITDA loss for 2025, emphasizing gross margin recovery and institutional market expansion.

While the company's financial performance is showing signs of improvement, the Hold rating from Canaccord Genuity reflects cautious optimism. Investors should closely monitor Nerdy's earnings and pipeline developments for further insights into its growth prospects.

References:
[1] https://www.marketbeat.com/instant-alerts/nerdy-nrdy-to-release-quarterly-earnings-on-thursday-2025-07-31/
[2] https://www.ainvest.com/news/nerdy-ai-driven-turnaround-blueprint-2025-profitability-2508-78/