Yext (NYSE:YEXT) Shares Gap Up on Strong Earnings

Key Points

• Yext shares jumped from a $6.77 close to a $7.66 open after the company reported stronger-than-expected quarterly earnings.
• Yext posted EPS of $0.21, beating estimates of $0.17, while revenue reached $111.1 million, slightly below expectations and down 1.8% year over year.
• Analysts maintain a consensus “Hold” rating with a $6.67 target price; institutional investors own approximately 70.98% of the stock, while insiders own 7.8%.

Yext (NYSE:YEXT - Get Free Report)'s stock price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $6.77, but opened at $7.66. Yext shares last traded at $6.9170, with a volume of 608,417 shares trading hands.

The company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.17 by $0.04. Yext had a net margin of 8.93% and a return on equity of 43.47%. The firm had revenue of $111.10 million during the quarter, compared to analysts' expectations of $111.30 million. During the same quarter last year, the business earned $0.13 earnings per share. The business's revenue for the quarter was down 1.8% compared to the same quarter last year.

Wall Street Analyst Weigh In

YEXT has been the topic of a number of research reports. Weiss Ratings upgraded Yext from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, June 3rd. Zacks Research cut Yext from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $6.67.

Insider Transactions at Yext

In other Yext news, Director Daniel J. Englander purchased 76,190 shares of Yext stock in a transaction on Monday, July 13th. The shares were bought at an average price of $5.22 per share, with a total value of $397,711.80. Following the completion of the acquisition, the director directly owned 141,190 shares of the company's stock, valued at approximately $737,011.80. This trade represents a 117.22% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Seth H. Waugh acquired 133,000 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $3.75 per share, with a total value of $498,750.00. Following the completion of the purchase, the director owned 319,411 shares in the company, valued at approximately $1,197,791.25. This represents a 71.35% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 7.80% of the company's stock.

Institutional Trading of Yext

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Lead Edge Capital Management LLC purchased a new position in Yext in the 2nd quarter valued at about $36,628,192. Pacer Advisors Inc. purchased a new stake in shares of Yext during the first quarter worth about $1,503,000. OP Asset Management Ltd purchased a new stake in shares of Yext during the first quarter worth about $3,915,000. Dimensional Fund Advisors LP raised its position in shares of Yext by 21.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,131,636 shares of the company's stock valued at $8,185,000 after buying an additional 373,953 shares during the last quarter. Finally, Nano Cap New Millennium Growth Fund L P purchased a new position in shares of Yext during the fourth quarter valued at approximately $1,814,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Yext Stock Up 1.0%

The firm's 50 day moving average is $5.50 and its 200-day moving average is $4.76. The firm has a market cap of $685.31 million, a PE ratio of 97.34 and a beta of 1.13. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 6.03.

Yext Company Profile

Yext, Inc is a software-as-a-service company that provides a platform for digital knowledge management. Its core offering enables businesses to centrally manage and synchronize public-facing information—such as location details, product descriptions and service offerings—across a network of search engines, mapping services, voice assistants and third-party directories.

The Yext platform is built around a proprietary Knowledge Graph, which stores and structures data to ensure consistency and accuracy.

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