Zacks Research Weighs in on Yelp's Q2 Earnings (NYSE:YELP)

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Yelp to $0.36 from $0.55, while keeping a Hold rating on the stock. The firm also modeled $1.84 in FY2026 EPS and $2.28 for FY2027.
• Wall Street sentiment remains cautious overall, with multiple firms issuing Hold, Sell, or Underweight calls and a consensus rating of Reduce. The average price target stands at $27.88.
• Yelp recently beat first-quarter expectations, reporting $0.30 EPS versus $0.26 expected and revenue of $361.46 million, but shares were trading around $22.74, below both the 50-day and 200-day moving averages.

Yelp Inc. (NYSE:YELP - Free Report) - Equities research analysts at Zacks Research dropped their Q2 2026 earnings estimates for Yelp in a report issued on Thursday, May 28th. Zacks Research analyst Team now anticipates that the local business review company will post earnings of $0.36 per share for the quarter, down from their previous estimate of $0.55. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Yelp's current full-year earnings is $1.85 per share. Zacks Research also issued estimates for Yelp's Q4 2026 earnings at $0.55 EPS, FY2026 earnings at $1.84 EPS, Q3 2027 earnings at $0.64 EPS, Q4 2027 earnings at $0.66 EPS and FY2027 earnings at $2.28 EPS.

Several other research firms also recently commented on YELP. Wall Street Zen downgraded Yelp from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. The Goldman Sachs Group dropped their price target on shares of Yelp from $33.00 to $25.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 17th. Weiss Ratings restated a "sell (d+)" rating on shares of Yelp in a research note on Monday, May 11th. Robert W. Baird set a $28.00 target price on shares of Yelp in a research note on Friday, May 8th. Finally, Morgan Stanley lowered their target price on shares of Yelp from $28.00 to $24.00 and set an "underweight" rating on the stock in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $27.88.

Yelp Stock Down 0.3%

Yelp stock opened at $22.74 on Monday. The firm has a 50 day moving average price of $25.34 and a 200-day moving average price of $26.54. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.21. Yelp has a twelve month low of $19.60 and a twelve month high of $39.58. The company has a market capitalization of $1.25 billion, a P/E ratio of 10.38, a P/E/G ratio of 2.44 and a beta of 0.47.

Yelp (NYSE:YELP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The local business review company reported $0.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.26 by $0.04. Yelp had a net margin of 9.47% and a return on equity of 20.19%. The business had revenue of $361.46 million during the quarter, compared to the consensus estimate of $353.47 million. During the same period in the prior year, the firm posted $0.36 EPS. The firm's quarterly revenue was up .8% compared to the same quarter last year.

Institutional Trading of Yelp

Several large investors have recently modified their holdings of the business. California State Teachers Retirement System grew its stake in shares of Yelp by 0.7% in the second quarter. California State Teachers Retirement System now owns 58,298 shares of the local business review company's stock worth $1,998,000 after purchasing an additional 393 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in Yelp by 6.0% during the fourth quarter. PNC Financial Services Group Inc. now owns 7,204 shares of the local business review company's stock worth $219,000 after acquiring an additional 408 shares in the last quarter. Pinnacle Holdings LLC raised its holdings in Yelp by 1.2% in the third quarter. Pinnacle Holdings LLC now owns 35,838 shares of the local business review company's stock worth $1,118,000 after buying an additional 413 shares during the last quarter. CWA Asset Management Group LLC raised its holdings in Yelp by 2.2% in the fourth quarter. CWA Asset Management Group LLC now owns 19,871 shares of the local business review company's stock worth $604,000 after buying an additional 436 shares during the last quarter. Finally, CIBC Private Wealth Group LLC raised its holdings in Yelp by 100.0% in the third quarter. CIBC Private Wealth Group LLC now owns 892 shares of the local business review company's stock worth $28,000 after buying an additional 446 shares during the last quarter. 90.11% of the stock is owned by institutional investors.

Insider Buying and Selling at Yelp

In related news, insider Craig Saldanha sold 1,200 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $24.72, for a total transaction of $29,664.00. Following the transaction, the insider owned 267,835 shares of the company's stock, valued at approximately $6,620,881.20. This trade represents a 0.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO David A. Schwarzbach sold 10,000 shares of the stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $25.00, for a total transaction of $250,000.00. Following the transaction, the chief financial officer directly owned 227,959 shares in the company, valued at approximately $5,698,975. This represents a 4.20% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 26,700 shares of company stock worth $677,839. 8.30% of the stock is owned by insiders.

About Yelp

Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company's flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.

Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.

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