Yelp (NYSE:YELP) Releases Earnings Results, Beats Expectations By $0.19 EPS

Key Points

• Yelp reported a quarterly earnings of $0.67 EPS, exceeding expectations by $0.19 EPS and achieving revenue of $370.39 million, which is higher than the anticipated $365.71 million.
• Despite the strong earnings report, Yelp's stock dropped 9.5% to $30.93 following the announcement.
• Insider trading activity saw CFO David A. Schwarzbach and CTO Sam Eaton selling significant portions of their shares, with a total of 58,345 shares sold over the last ninety days.

Yelp (NYSE:YELP - Get Free Report) released its quarterly earnings data on Thursday, August 7th. The local business review company reported $0.67 EPS for the quarter, beating the consensus estimate of $0.48 by $0.19, Zacks reports. The company had revenue of $370.39 million during the quarter, compared to the consensus estimate of $365.71 million. Yelp had a return on equity of 20.17% and a net margin of 10.28%. The firm's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.54 EPS. Yelp updated its FY 2025 guidance to EPS.

Yelp Trading Down 2.7%

Shares of YELP traded down $0.86 during mid-day trading on Thursday, reaching $31.15. The company's stock had a trading volume of 1,079,064 shares, compared to its average volume of 881,342. Yelp has a 1-year low of $29.96 and a 1-year high of $41.72. The stock has a market cap of $1.99 billion, a P/E ratio of 14.10, a PEG ratio of 0.81 and a beta of 0.97. The business has a 50-day simple moving average of $34.47 and a two-hundred day simple moving average of $35.87.

Insider Buying and Selling

In other news, insider Carmen Amara sold 6,886 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $38.19, for a total value of $262,976.34. Following the completion of the sale, the insider directly owned 92,253 shares of the company's stock, valued at $3,523,142.07. This trade represents a 6.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Craig Saldanha sold 1,000 shares of Yelp stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $35.23, for a total value of $35,230.00. Following the sale, the insider directly owned 212,720 shares of the company's stock, valued at approximately $7,494,125.60. The trade was a 0.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 58,345 shares of company stock valued at $2,151,656. Insiders own 8.00% of the company's stock.

Institutional Trading of Yelp

Several hedge funds have recently added to or reduced their stakes in YELP. Strs Ohio acquired a new stake in Yelp during the 1st quarter worth approximately $56,000. Quantinno Capital Management LP lifted its holdings in Yelp by 33.2% during the 2nd quarter. Quantinno Capital Management LP now owns 13,069 shares of the local business review company's stock worth $448,000 after purchasing an additional 3,256 shares during the last quarter. Daiwa Securities Group Inc. acquired a new stake in Yelp during the 2nd quarter worth approximately $874,000. Nebula Research & Development LLC bought a new stake in shares of Yelp during the 2nd quarter valued at $980,000. Finally, Norges Bank bought a new stake in shares of Yelp during the 2nd quarter valued at $1,325,000. 90.11% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Morgan Stanley cut their price objective on Yelp from $35.00 to $30.00 and set an "underweight" rating for the company in a report on Thursday, April 17th. JPMorgan Chase & Co. cut their price objective on Yelp from $36.00 to $35.00 and set a "neutral" rating for the company in a report on Tuesday, April 22nd. Bank of America cut their price objective on Yelp from $31.00 to $30.00 and set an "underperform" rating for the company in a research report on Friday, August 8th. Finally, Wall Street Zen cut Yelp from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Two analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $34.00.

Yelp Company Profile

Yelp Inc operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services.