Yelp Inc. (YELP) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts are broadly bearish on Yelp: Seven firms have a consensus “Reduce” rating, including three sells, three holds and one buy. The average 12-month price target is $25.57, while Morgan Stanley cut its target to $17 and JPMorgan initiated coverage with an “underweight” rating and a $19 target.
• Yelp shares opened at $19.54, near the lower end of their 52-week range of $17.26 to $34.49, with the stock down 1.7%. The company trades at a P/E ratio of 9.35.
• Yelp recently exceeded quarterly expectations, reporting $0.57 in EPS versus a $0.36 estimate and $375.52 million in revenue, up 1.4% year over year. Insiders sold shares worth $464,249 over the past three months, while institutional investors own 90.11% of the stock.

Yelp Inc. (NYSE:YELP - Get Free Report) has been given a consensus recommendation of "Reduce" by the seven ratings firms that are currently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $25.57.

Several analysts recently issued reports on YELP shares. Morgan Stanley cut their target price on Yelp from $24.00 to $17.00 and set an "underweight" rating on the stock in a research note on Tuesday, October 13th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Yelp in a research report on Friday, August 7th. Finally, JPMorgan Chase & Co. initiated coverage on Yelp in a research report on Friday, September 11th. They set an "underweight" rating and a $19.00 price target for the company.

Insider Activity at Yelp

In related news, CFO David A. Schwarzbach sold 8,809 shares of the firm's stock in a transaction 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 owned 180,466 shares of the company's stock, valued at $4,185,006.54. This trade represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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 on Monday, August 24th. The stock was sold at an average price of $23.40, for a total value of $89,598.60. Following the completion of the sale, the chief technology officer directly owned 54,124 shares of the company's stock, valued at $1,266,501.60. The trade was 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 21,138 shares of company stock worth $464,249 over the last three months. Insiders own 8.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. grew its holdings in shares of Yelp by 71.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,158 shares of the local business review company's stock worth $35,000 after acquiring an additional 482 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of Yelp in the 2nd quarter worth approximately $61,000. Essential Partners LLC raised its position in shares of Yelp by 225.9% in the 1st quarter. Essential Partners LLC now owns 2,796 shares of the local business review company's stock worth $69,000 after acquiring an additional 1,938 shares in the last quarter. Parallel Advisors LLC lifted its stake in shares of Yelp by 428.4% in the 1st quarter. Parallel Advisors LLC now owns 3,720 shares of the local business review company's stock valued at $92,000 after purchasing an additional 3,016 shares during the period. Finally, Nykredit A S purchased a new position in shares of Yelp in the 2nd quarter valued at approximately $128,000. 90.11% of the stock is owned by hedge funds and other institutional investors.

Yelp Trading Down 1.7%

Shares of YELP opened at $19.54 on Tuesday. The stock has a market capitalization of $1.06 billion, a P/E ratio of 9.35, a PEG ratio of 1.79 and a beta of 0.45. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.16. The firm has a fifty day simple moving average of $20.86 and a two-hundred day simple moving average of $23.64. Yelp has a twelve month low of $17.26 and a twelve month high of $34.49.

Yelp (NYSE:YELP - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The local business review company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.36 by $0.21. Yelp had a net margin of 8.59% and a return on equity of 19.52%. The business had revenue of $375.52 million for the quarter, compared to analyst estimates of $366.89 million. During the same quarter last year, the firm earned $0.67 EPS. The company's revenue was up 1.4% on a year-over-year basis. On average, research analysts anticipate that Yelp will post 1.86 EPS for the current year.

About Yelp

Yelp Inc operates an online platform that connects consumers with local businesses. Its website and mobile application allow users to search for businesses, read and contribute reviews, view photos and other business information, and discover providers across categories such as restaurants, home services, beauty, automotive, and health care.

The company generates revenue primarily by offering businesses advertising and other marketing solutions designed to help them reach customers on Yelp.

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