Yelp (NYSE:YELP) Shares Break Above 50-Day Moving Average - Here's What Happened

Key Points

• Yelp shares rose above their 50-day moving average of $19.94, reaching $22.52 intraday and last trading at $22.035. The stock’s 200-day moving average was $23.60.
• Analyst views remain mixed: Yelp has a consensus Hold rating and a $25.57 average price target, with ratings ranging from Strong Buy to Sell.
• In its latest reported quarter, Yelp beat estimates with earnings of $0.57 per share versus $0.36 expected and revenue of $375.52 million versus $366.89 million expected.

Yelp Inc. (NYSE:YELP - Get Free Report) shares crossed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $19.94 and traded as high as $22.52. Yelp shares last traded at $22.0350, with a volume of 2,013,357 shares.

Analysts Set New Price Targets

Several brokerages have weighed in on YELP. Zacks Research upgraded Yelp from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 27th. JPMorgan Chase & Co. started coverage on Yelp in a research note on Friday, September 11th. They issued an "underweight" rating and a $19.00 price objective for the company. Weiss Ratings reissued a "sell (d+)" rating on shares of Yelp in a research report on Friday, August 7th. Finally, Morgan Stanley lowered their price objective on Yelp from $24.00 to $17.00 and set an "underweight" rating for the company in a research report on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Yelp presently has a consensus rating of "Hold" and a consensus target price of $25.57.

Yelp Price Performance

The stock's fifty day moving average price is $19.94 and its two-hundred day moving average price is $23.60. The firm has a market capitalization of $1.20 billion, a price-to-earnings ratio of 10.54, a price-to-earnings-growth ratio of 1.78 and a beta of 0.43. 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 (NYSE:YELP - Get Free Report) last issued its earnings results on Thursday, August 6th. The local business review company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.36 by $0.21. The firm had revenue of $375.52 million during the quarter, compared to the consensus estimate of $366.89 million. Yelp had a net margin of 8.59% and a return on equity of 19.52%. The company's revenue was up 1.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.67 earnings per share. Equities research analysts expect that Yelp Inc. will post 1.86 EPS for the current year.

Insider Transactions at Yelp

In other Yelp news, CTO Alexander Coleman Levy sold 3,829 shares of Yelp stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $23.40, for a total transaction 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. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, CFO David Schwarzbach sold 7,500 shares of the company's stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $20.00, for a total value of $150,000.00. Following the transaction, the chief financial officer directly owned 165,466 shares of the company's stock, valued at approximately $3,309,320. This represents a 4.34% 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. Insiders have sold a total of 28,638 shares of company stock valued at $614,249 over the last ninety days. 8.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Yelp

Institutional investors have recently added to or reduced their stakes in the business. Lido Advisors LLC boosted its stake in Yelp by 27.0% in the third quarter. Lido Advisors LLC now owns 10,891 shares of the local business review company's stock valued at $201,000 after acquiring an additional 2,315 shares in the last quarter. Ethic Inc. purchased a new position in shares of Yelp during the third quarter worth about $185,000. Abacus Wealth Partners LLC grew its holdings in shares of Yelp by 46.4% during the third quarter. Abacus Wealth Partners LLC now owns 16,932 shares of the local business review company's stock worth $313,000 after purchasing an additional 5,365 shares during the last quarter. Heritage Family Offices LLP acquired a new stake in shares of Yelp during the third quarter worth about $29,000. Finally, Covestor Ltd increased its position in shares of Yelp by 123.7% during the third quarter. Covestor Ltd now owns 9,501 shares of the local business review company's stock worth $176,000 after purchasing an additional 5,253 shares in the last quarter. Hedge funds and other institutional investors own 90.11% of the company's stock.

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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