Topline Capital Partners, a major holder of NerdWallet (NRDS), recently bought 461,777 shares. The buy increased the fund’s stake by 10%, and came to a total cost of $5,275,974.
This marks the first buy since September 2023, when the company CEO bought $255,676 of shares. Otherwise, company insiders have been slight sellers of shares, with two directors and a company Vice President selling off small amounts of their positions. Overall, more insiders have sold, but buying has far exceeded selling.
Overall, NerdWallet insiders own 5.6% of shares, and institutional investors like Topline own 72.7% of shares.
The digital platform for financial advice and products is up 70% over the past year, amid a rising stock market and strong economy.
NerdWallet has lost money over the past year, but revenues are trending higher, up 5.1%. Despite the slight loss, NerdWallet has over $110 million in cash, and less than $10 million in debt, for a strong balance sheet.
Action to take: Shares have been drifting lower since the summer. Unless NerdWallet can improve its operational performance, a further downtrend from here is more likely. Interested investors can potentially buy shares under $10 if this trend persists.
For traders, with a current downtrend in place, the March 2025 $10 puts, last trading for about $1.05, are best positioned. They could see mid-double-digit returns on a continued decline in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.