Nerdy Announces 1-for-15 Reverse Split to Regain NYSE Compliance
NRDY is trading near its 52-week low of $0.704 (0.4% above the low).
Summary
Nerdy Inc. announced a 1-for-15 reverse stock split, a move designed to lift its share price above the NYSE's $1.00 minimum listing requirement. The stock currently trades at $0.707, near its 52-week low of $0.7042. This follows the company's July 2 proxy filing seeking shareholder approval for a reverse split, indicating the proposal has now been approved and is being implemented. The reverse split will reduce the number of outstanding shares, mechanically raising the per-share price, but does not change the company's market capitalization or underlying fundamentals. The company reported a narrower Q2 net loss of $6.9M on revenue of $43.2M on August 6, and is winding down its institutional tutoring business. The reverse split is a compliance measure, not a fundamental improvement, and may be viewed negatively by investors as a sign of distress.
At the time of this announcement, NRDY was trading at $0.71 on NYSE in the Technology sector, with a market capitalization of approximately $135.5M. The 52-week trading range was $0.70 to $1.49. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.