Yelp Inc. (NYSE:YELP) Stock Now Rated “Reduce” by Wall Street Analysts

Yelp Inc. (NYSE:YELP) has earned a consensus rating of “Reduce” from the seven brokerages that are covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has issued a buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $25.57.

A number of equities analysts have weighed in on the company. JPMorgan Chase & Co. began coverage on Yelp in a research report on Friday, September 11th. They set an “underweight” rating and a $19.00 price target on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Yelp in a research report on Friday, August 7th. Finally, Morgan Stanley reduced their target price on Yelp from $24.00 to $17.00 and set an “underweight” rating for the company in a research note on Tuesday, October 13th.

Yelp Stock Performance

Shares of YELP opened at $19.47 on Tuesday. The firm has a 50-day moving average of $20.50 and a 200-day moving average of $23.96. Yelp has a one year low of $17.26 and a one year high of $34.49. The company has a market cap of $1.06 billion, a PE ratio of 9.31, a price-to-earnings-growth ratio of 1.80 and a beta of 0.45. 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) last issued its earnings results on Thursday, August 6th. The local business review company reported $0.57 earnings per share (EPS) for the quarter, beating 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 company had revenue of $375.52 million for the quarter, compared to analysts’ expectations of $366.89 million. During the same period in the prior year, the firm earned $0.67 EPS. Yelp’s quarterly revenue was up 1.4% compared to the same quarter last year. As a group, equities analysts forecast that Yelp will post 1.86 earnings per share for the current year.

Insiders Place Their Bets

In other Yelp news, CFO David Schwarzbach sold 7,500 shares of the firm’s stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $20.00, for a total transaction of $150,000.00. Following the completion of the sale, the chief financial officer owned 165,466 shares of the company’s stock, valued at $3,309,320. This trade represents a 4.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexander Coleman Levy sold 3,829 shares of Yelp stock in a transaction on Monday, August 24th. The stock was sold at an average price of $23.40, for a total transaction of $89,598.60. Following the transaction, the chief technology officer directly owned 54,124 shares of the company’s stock, valued at approximately $1,266,501.60. This trade represents 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 90 days, insiders sold 28,638 shares of company stock worth $614,249. 8.30% of the stock is owned by company insiders.

Institutional Trading of Yelp

Hedge funds have recently modified their holdings of the stock. OP Asset Management Ltd acquired a new position in Yelp in the 1st quarter valued at about $14,796,000. Counterpoint Mutual Funds LLC bought a new stake in shares of Yelp during the third quarter worth approximately $8,951,000. Dimensional Fund Advisors LP boosted its holdings in shares of Yelp by 20.5% during the first quarter. Dimensional Fund Advisors LP now owns 2,683,927 shares of the local business review company’s stock worth $66,402,000 after acquiring an additional 457,261 shares during the period. Empowered Funds LLC grew its position in shares of Yelp by 192.8% in the first quarter. Empowered Funds LLC now owns 367,028 shares of the local business review company’s stock valued at $9,080,000 after purchasing an additional 241,656 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of Yelp by 73.8% in the first quarter. Bank of America Corp DE now owns 562,739 shares of the local business review company’s stock valued at $13,922,000 after purchasing an additional 238,993 shares during the last quarter. Institutional investors and hedge funds own 90.11% of the company’s stock.

About Yelp

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.