Yelp (NYSE:YELP) Shares Up 11.2% – Time to Buy?

Yelp Inc. (NYSE:YELP) shares traded up 11.2% on Wednesday. The stock traded as high as $21.97 and last traded at $22.0510. Approximately 194,581 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 1,277,895 shares. The stock had previously closed at $19.83.

Analyst Ratings Changes

Several equities analysts have recently commented on YELP shares. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Yelp in a research report on Friday, August 7th. Zacks Research upgraded Yelp from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 27th. JPMorgan Chase & Co. initiated coverage on Yelp in a report on Friday, September 11th. They issued an “underweight” rating and a $19.00 price objective for the company. Finally, Morgan Stanley cut their price objective on Yelp from $24.00 to $17.00 and set an “underweight” rating on the stock in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $25.57.

Yelp Trading Up 10.0%

The firm has a market cap of $1.18 billion, a P/E ratio of 10.46, a P/E/G ratio of 1.78 and a beta of 0.43. The business’s 50-day moving average is $19.98 and its two-hundred day moving average is $23.63. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16.

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, topping 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 firm had revenue of $375.52 million for the quarter, compared to analysts’ expectations of $366.89 million. During the same quarter last year, the company posted $0.67 earnings per share. Yelp’s revenue was up 1.4% on a year-over-year basis. As a group, analysts expect that Yelp Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling

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

Hedge Funds Weigh In On Yelp

Several institutional investors have recently modified their holdings of YELP. Rockefeller Capital Management L.P. lifted its position in Yelp by 71.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,158 shares of the local business review company’s stock valued at $35,000 after purchasing an additional 482 shares during the last quarter. Lakewood Asset Management LLC boosted its stake in Yelp by 5.9% during the 3rd quarter. Lakewood Asset Management LLC now owns 18,090 shares of the local business review company’s stock valued at $335,000 after purchasing an additional 1,015 shares during the period. Heritage Family Offices LLP acquired a new position in Yelp during the 3rd quarter valued at about $29,000. Pictet Asset Management Holding SA grew its position in Yelp by 16.9% in the 1st quarter. Pictet Asset Management Holding SA now owns 11,482 shares of the local business review company’s stock worth $284,000 after purchasing an additional 1,656 shares during the last quarter. Finally, Essential Partners LLC grew its position in Yelp by 225.9% in the 1st quarter. Essential Partners LLC now owns 2,796 shares of the local business review company’s stock worth $69,000 after purchasing an additional 1,938 shares during the last quarter. Institutional investors own 90.11% of the company’s stock.

Yelp Company Profile

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.