Yelp (NYSE:YELP) CFO David Schwarzbach Sells 7,500 Shares of Company Stock

Key Points

• Yelp CFO David Schwarzbach sold 7,500 shares at an average price of $20, generating $150,000; the transaction was conducted under a pre-arranged Rule 10b5-1 plan and reduced his position by 4.34%.
• Yelp shares fell 3.5% to $19.97, with the stock trading well below its 52-week high of $34.49. The company reported quarterly EPS of $0.57, beating estimates, while revenue rose 1.4% year over year to $375.52 million.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and a $25.57 target price; institutional investors own approximately 90.11% of Yelp’s shares.

Yelp Inc. (NYSE:YELP - Get Free Report) CFO David Schwarzbach sold 7,500 shares of Yelp stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $20.00, for a total transaction of $150,000.00. Following the transaction, the chief financial officer directly owned 165,466 shares of the company's stock, valued at $3,309,320. This represents a 4.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Yelp Trading Down 3.5%

YELP stock traded down $0.73 during midday trading on Friday, hitting $19.97. The stock had a trading volume of 977,006 shares, compared to its average volume of 1,285,725. The firm has a market cap of $1.08 billion, a P/E ratio of 9.56, a price-to-earnings-growth ratio of 1.78 and a beta of 0.45. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16. Yelp Inc. has a 1-year low of $17.26 and a 1-year high of $34.49. The business has a fifty day moving average price of $20.64 and a two-hundred day moving average price of $23.54.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. OP Asset Management Ltd acquired a new stake in Yelp in the first quarter valued at approximately $14,796,000. Counterpoint Mutual Funds LLC bought a new stake in shares of Yelp during the third quarter valued at approximately $8,951,000. Dimensional Fund Advisors LP raised its position in shares of Yelp by 20.5% during the first quarter. Dimensional Fund Advisors LP now owns 2,683,927 shares of the local business review company's stock worth $66,402,000 after purchasing an additional 457,261 shares during the period. Empowered Funds LLC raised its position in shares of Yelp by 192.8% during the first quarter. Empowered Funds LLC now owns 367,028 shares of the local business review company's stock worth $9,080,000 after purchasing an additional 241,656 shares during the period. Finally, Bank of America Corp DE raised its position in shares of Yelp by 73.8% during the first 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 during the period. Institutional investors own 90.11% of the company's stock.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Weiss Ratings reissued a "sell (d+)" rating on shares of Yelp in a research note on Friday, August 7th. Morgan Stanley reduced their price target on shares of Yelp from $24.00 to $17.00 and set an "underweight" rating for the company in a report on Tuesday, October 13th. Finally, JPMorgan Chase & Co. assumed coverage on shares of Yelp in a research note on Friday, September 11th. They issued an "underweight" rating and a $19.00 price target for the company. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $25.57.

Yelp Company Profile

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

The company generates revenue primarily by providing businesses with advertising and marketing solutions designed to increase their visibility and connect them with potential customers.

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