Yelp Inc. (NYSE:YELP) Stock Has Average Target Price of $26.57

Key Points

• Analyst sentiment is bearish: Yelp has an average “Reduce” rating from seven analysts, with three sells, three holds and one buy. The average 12-month price target is $26.57, while JPMorgan initiated coverage with an “underweight” rating and a $19 target.
• Quarterly results exceeded expectations: Yelp reported adjusted earnings of $0.57 per share versus the $0.36 consensus estimate, while revenue reached $375.52 million, up 1.4% year over year and above estimates.
• The stock remains near its yearly low: Shares opened at $18.39, compared with a 52-week range of $17.64 to $34.49. Insiders sold 13,138 shares worth about $304,949 in the latest quarter, while institutional investors own 90.11% of the company.

Yelp Inc. (NYSE:YELP - Get Free Report) has received an average recommendation of "Reduce" from the seven research firms that are covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $26.57.

A number of analysts have commented on the stock. Weiss Ratings restated a "sell (d+)" rating on shares of Yelp in a research note on Friday, August 7th. JPMorgan Chase & Co. started coverage on shares of Yelp in a research report on Friday, September 11th. They set an "underweight" rating and a $19.00 target price for the company.

Yelp Price Performance

YELP stock opened at $18.39 on Friday. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.75 and a quick ratio of 1.75. The company's 50-day moving average is $23.31 and its 200-day moving average is $24.31. The stock has a market capitalization of $997.75 million, a PE ratio of 8.80, a price-to-earnings-growth ratio of 1.73 and a beta of 0.43. Yelp has a 1 year low of $17.64 and a 1 year high of $34.49.

Yelp (NYSE:YELP - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The local business review company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.36 by $0.21. Yelp had a return on equity of 19.52% and a net margin of 8.59%.The business had revenue of $375.52 million for the quarter, compared to the consensus estimate of $366.89 million. During the same period in the prior year, the business earned $0.67 EPS. The firm's revenue for the quarter was up 1.4% on a year-over-year basis. Equities research analysts expect that Yelp will post 1.83 EPS for the current fiscal year.

Insider Transactions at Yelp

In other news, CFO David A. Schwarzbach sold 8,809 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $23.19, for a total value of $204,280.71. Following the completion of the sale, the chief financial officer directly owned 180,466 shares of the company's stock, valued at $4,185,006.54. This represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Alexander Coleman Levy sold 3,829 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $23.40, for a total value of $89,598.60. Following the completion of the transaction, the chief technology officer owned 54,124 shares in the company, valued at $1,266,501.60. This represents a 6.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 13,138 shares of company stock valued at $304,949 in the last quarter. Company insiders own 8.30% of the company's stock.

Institutional Investors Weigh In On Yelp

Several institutional investors have recently bought and sold shares of the stock. Headwater Capital Co Ltd bought a new position in shares of Yelp during the fourth quarter valued at about $4,558,000. Bank of America Corp DE grew its position in Yelp by 73.8% in the 1st quarter. Bank of America Corp DE now owns 562,739 shares of the local business review company's stock worth $13,922,000 after purchasing an additional 238,993 shares in the last quarter. Money Concepts Capital Corp bought a new stake in Yelp in the 1st quarter worth about $1,684,000. Royal Bank of Canada increased its stake in Yelp by 14.0% in the 1st quarter. Royal Bank of Canada now owns 358,536 shares of the local business review company's stock valued at $8,870,000 after buying an additional 44,087 shares during the last quarter. Finally, Cygnus Capital Advisors LLC increased its stake in Yelp by 3,241.0% in the 2nd quarter. Cygnus Capital Advisors LLC now owns 167,050 shares of the local business review company's stock valued at $4,096,000 after buying an additional 162,050 shares during the last quarter. Institutional investors own 90.11% of the company's stock.

Yelp Company Profile

Yelp Inc operates an online platform that connects consumers with local businesses. Through its website and mobile applications, Yelp provides user-generated reviews, ratings, photos and other information about businesses across categories such as restaurants, home services, beauty and fitness, automotive, health and professional services.

The company generates revenue primarily by offering businesses advertising and other marketing products designed to help them reach consumers searching for local services.

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