Zacks Investment Research Downgrades Yelp (NYSE:YELP) to Sell

Yelp (NYSE:YELPGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday, Zacks.com reports. They currently have a $32.00 target price on the local business review company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 8.11% from the stock’s previous close.

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.”

Several other research firms have also issued reports on YELP. StockNews.com upgraded Yelp from a “buy” rating to a “strong-buy” rating in a research report on Friday. Wells Fargo & Company lowered their target price on Yelp from $40.00 to $35.00 in a research note on Monday. Three investment analysts have rated the stock with a sell rating, two have given a hold rating, one has assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, Yelp presently has a consensus rating of “Hold” and a consensus price target of $37.43.

Shares of YELP stock traded down $1.24 on Monday, hitting $29.60. 8,140 shares of the stock were exchanged, compared to its average volume of 660,617. The firm has a 50 day moving average price of $33.71. The company has a market capitalization of $2.10 billion, a price-to-earnings ratio of 51.93 and a beta of 1.66. Yelp has a one year low of $30.19 and a one year high of $43.28.

Yelp (NYSE:YELPGet Rating) last released its quarterly earnings results on Thursday, May 5th. The local business review company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.08. Yelp had a return on equity of 5.72% and a net margin of 4.14%. The firm had revenue of $276.60 million for the quarter, compared to analysts’ expectations of $266.60 million. During the same quarter last year, the firm posted ($0.08) EPS. The company’s revenue was up 19.2% compared to the same quarter last year. As a group, equities analysts forecast that Yelp will post 0.99 earnings per share for the current year.

In other Yelp news, COO Joseph R. Nachman sold 20,500 shares of the stock in a transaction on Friday, April 1st. The stock was sold at an average price of $34.24, for a total transaction of $701,920.00. Following the sale, the chief operating officer now owns 348,102 shares of the company’s stock, valued at approximately $11,919,012.48. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Joseph R. Nachman sold 6,000 shares of the stock in a transaction on Thursday, April 21st. The shares were sold at an average price of $34.81, for a total value of $208,860.00. Following the sale, the chief operating officer now directly owns 342,102 shares in the company, valued at approximately $11,908,570.62. The disclosure for this sale can be found here. Insiders sold 46,679 shares of company stock worth $1,604,162 over the last quarter. 8.70% of the stock is owned by company insiders.

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. grew its position in shares of Yelp by 1.7% during the 4th quarter. BlackRock Inc. now owns 8,059,568 shares of the local business review company’s stock valued at $292,080,000 after acquiring an additional 131,593 shares during the period. Acadian Asset Management LLC lifted 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 during the last quarter. Macquarie Group Ltd. lifted its holdings in Yelp by 1.0% in the third quarter. Macquarie Group Ltd. now owns 1,588,236 shares of the local business review company’s stock valued at $59,146,000 after acquiring an additional 16,394 shares during the last quarter. Tenzing Global Management LLC lifted its stake in 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 in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Yelp by 1.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,555,703 shares of the local business review company’s stock worth $56,379,000 after purchasing an additional 26,627 shares in the last quarter. Institutional investors own 88.33% of the company’s stock.

About Yelp (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.

Featured Articles

Get a free copy of the Zacks research report on Yelp (YELP)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Yelp (NYSE:YELP)

Receive News & Ratings for Yelp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yelp and related companies with MarketBeat.com's FREE daily email newsletter.