Yelp (NYSE:YELP) Sets New 1-Year Low - What's Next?

Key Points

• Yelp shares fell to a new 52-week low of $17.64, well below their 50-day and 200-day moving averages of $23.49 and $24.36, respectively.
• Analyst sentiment remains cautious: the stock carries a “Reduce” consensus rating, with one Buy, three Holds and three Sells, and an average price target of $26.57.
• Despite the share-price weakness, Yelp’s latest quarter exceeded expectations, with EPS of $0.57 versus a $0.36 estimate and revenue of $375.52 million; revenue rose 1.4% year over year.

Yelp Inc. (NYSE:YELP - Get Free Report)'s share price reached a new 52-week low on Thursday . The company traded as low as $17.64 and last traded at $17.7440, with a volume of 1817886 shares changing hands. The stock had previously closed at $18.96.

Analyst Ratings Changes

YELP has been the subject of a number of analyst reports. JPMorgan Chase & Co. started coverage on shares of Yelp in a report on Friday, September 11th. They set an "underweight" rating and a $19.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Yelp in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $26.57.

Yelp Price Performance

The firm has a market cap of $962.79 million, a P/E ratio of 8.49, a P/E/G ratio of 1.73 and a beta of 0.43. The company has a fifty day moving average of $23.49 and a 200-day moving average of $24.36. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.75 and a quick ratio of 1.75.

Yelp (NYSE:YELP - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $375.52 million for the quarter, compared to the consensus estimate of $366.89 million. During the same period in the previous year, the firm earned $0.67 EPS. The business's revenue for the quarter was up 1.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Yelp Inc. will post 1.83 EPS for the current fiscal year.

Insider Activity at Yelp

In other news, CFO David Schwarzbach sold 8,809 shares of the business's 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 transaction, the chief financial officer owned 180,466 shares in the company, valued at $4,185,006.54. The trade was a 4.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 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 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 ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last three months, insiders have sold 13,138 shares of company stock worth $304,949. Insiders own 8.30% of the company's stock.

Institutional Trading of Yelp

Several hedge funds have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. grew its holdings in Yelp by 71.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,158 shares of the local business review company's stock valued at $35,000 after purchasing an additional 482 shares during the period. Hantz Financial Services Inc. raised its stake in shares of Yelp by 181.3% in the fourth quarter. Hantz Financial Services Inc. now owns 1,297 shares of the local business review company's stock valued at $39,000 after buying an additional 836 shares during the period. Public Employees Retirement System of Ohio bought a new stake in shares of Yelp in the second quarter valued at $61,000. Essential Partners LLC lifted its position in shares of Yelp by 225.9% during the 1st quarter. Essential Partners LLC now owns 2,796 shares of the local business review company's stock valued at $69,000 after buying an additional 1,938 shares during the last quarter. Finally, Modus Advisors LLC bought a new position in shares of Yelp during the 4th quarter worth $88,000. 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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