Yelp (NYSE:YELP) Upgraded to Strong-Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Yelp (NYSE:YELPGet Rating) from a hold rating to a strong-buy rating in a research note released on Thursday morning, reports. The brokerage currently has $39.00 price objective on the local business review company’s stock.

According to Zacks, “Yelp is benefiting from reopening of economies which is resulting in higher ad spending, an increase in Paying Advertising Locations and an improvement in non-term customer retention rate. The company is witnessing acceleration in consumer traffic across app-unique devices. Significant improvement in cumulative reviews is encouraging too. The company’s sustained focus on expanding its product portfolio with the launch of Verified License, Business Highlights, Yelp Portfolios, Yelp Fusion remains a key growth driver. Nonetheless, decline in food take-out and delivery order volumes, as several restaurants resumed and increased their dine-in operations, is likely to continue hurting its transaction revenues in the near-term. Moreover, increased spending towards long-term growth initiatives is expected to hurt profitability in the near-term.”

Other research analysts also recently issued research reports about the stock. assumed coverage on shares of Yelp in a research report on Thursday, March 31st. They issued a buy rating on the stock. JPMorgan Chase & Co. dropped their target price on shares of Yelp from $44.00 to $40.00 and set a neutral rating on the stock in a research report on Wednesday, December 15th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, two have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of Hold and an average price target of $39.57.

Shares of NYSE YELP opened at $34.38 on Thursday. Yelp has a 1-year low of $30.19 and a 1-year high of $43.28. The business has a fifty day moving average price of $34.21 and a 200 day moving average price of $35.81. The stock has a market capitalization of $2.44 billion, a P/E ratio of 68.76 and a beta of 1.75.

Yelp (NYSE:YELPGet Rating) last released its quarterly earnings results on Thursday, February 10th. The local business review company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.15 by $0.15. Yelp had a net margin of 3.84% and a return on equity of 5.02%. The business had revenue of $273.40 million for the quarter, compared to analysts’ expectations of $272.10 million. During the same period last year, the business earned $0.27 EPS. The company’s revenue was up 17.2% compared to the same quarter last year. Analysts predict that Yelp will post 1.06 EPS for the current year.

In other news, CFO David A. Schwarzbach sold 7,500 shares of the company’s stock in a transaction that occurred on Friday, April 1st. The stock was sold at an average price of $34.24, for a total transaction of $256,800.00. Following the completion of the sale, the chief financial officer now owns 214,945 shares in the company, valued at $7,359,716.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Joseph R. Nachman sold 20,500 shares of the stock in a transaction that occurred on Friday, April 1st. The stock was sold at an average price of $34.24, for a total value of $701,920.00. Following the transaction, the chief operating officer now directly owns 348,102 shares of the company’s stock, valued at $11,919,012.48. The disclosure for this sale can be found here. Insiders sold a total of 40,679 shares of company stock worth $1,395,302 in the last quarter. Company insiders own 9.50% of the company’s stock.

Several large investors have recently modified their holdings of YELP. Morgan Stanley lifted its position in shares of Yelp by 1,703.4% in the second quarter. Morgan Stanley now owns 1,130,357 shares of the local business review company’s stock valued at $45,170,000 after acquiring an additional 1,067,679 shares in the last quarter. Norges Bank acquired a new stake in Yelp in the fourth quarter valued at $27,391,000. Schonfeld Strategic Advisors LLC acquired a new stake in Yelp in the third quarter valued at $28,071,000. Acadian Asset Management LLC raised its holdings in Yelp by 37.0% in the fourth quarter. Acadian Asset Management LLC now owns 1,650,838 shares of the local business review company’s stock valued at $59,806,000 after acquiring an additional 445,602 shares in the last quarter. Finally, Tenzing Global Management LLC raised its holdings in shares of Yelp by 31.3% during the third quarter. Tenzing Global Management LLC now owns 1,575,000 shares of the local business review company’s stock worth $58,653,000 after purchasing an additional 375,000 shares during the period. Institutional investors and hedge funds own 88.10% of the company’s stock.

Yelp Company Profile (Get Rating)

Yelp Inc operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various local business 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.

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