Yelp (NYSE:YELP) Rating Lowered to Sell at Zacks Investment Research

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Yelp (NYSE:YELP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Sunday, Zacks.com reports. They presently have a $37.00 target price on the local business review company’s stock. Zacks Investment Research‘s price target suggests a potential upside of 3.96% from the company’s current price.

According to Zacks, “Yelp is benefiting from strong growth in ad revenues. The company’s shift toward selling advertising plans without any fixed duration is leading to a robust increase in paying advertiser accounts. The collaboration with GrubHub is a tailwind for Yelp as it provides users with access to a significant number of restaurants available for food ordering on the platform. Besides, the company is witnessing acceleration in consumer traffic across app unique devices. Significant improvement in cumulative reviews is also encouraging. Shares have outperformed the industry in the past year. However, increase in operating expenses driven by an expected increase in headcount, product development and sales & marketing expenses will remain an overhang on the bottom line. Stringent competition from search giants like Google and Bing is a big threat.”

Other equities analysts have also recently issued research reports about the stock. BMO Capital Markets started coverage on shares of Yelp in a research note on Wednesday, April 17th. They issued an “outperform” rating on the stock. ValuEngine raised shares of Zogenix from a “buy” rating to a “strong-buy” rating in a report on Thursday, June 27th. B. Riley set a $13.00 target price on shares of Vista Outdoor and gave the stock a “buy” rating in a report on Friday, May 10th. Stifel Nicolaus set a $74.00 target price on shares of InterXion and gave the stock a “buy” rating in a report on Friday, May 10th. Finally, SunTrust Banks set a $37.00 target price on shares of Yelp and gave the stock a “hold” rating in a report on Friday, May 10th. Two research analysts have rated the stock with a sell rating, fifteen have given a hold rating and eight have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $39.33.

Shares of NYSE:YELP opened at $35.59 on Friday. The business has a 50 day simple moving average of $33.10. Yelp has a twelve month low of $29.33 and a twelve month high of $52.50. The company has a quick ratio of 5.93, a current ratio of 5.93 and a debt-to-equity ratio of 0.21. The company has a market cap of $2.78 billion, a PE ratio of 79.09, a PEG ratio of 2.13 and a beta of 1.13.

Yelp (NYSE:YELP) last issued its quarterly earnings data on Thursday, May 9th. The local business review company reported $0.02 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.02. Yelp had a net margin of 6.17% and a return on equity of 4.09%. The firm had revenue of $235.94 million for the quarter, compared to analysts’ expectations of $234.96 million. During the same quarter in the prior year, the business earned ($0.03) EPS. The business’s quarterly revenue was up 5.8% on a year-over-year basis. Equities analysts forecast that Yelp will post 0.68 earnings per share for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the business. PNC Financial Services Group Inc. grew its holdings in Yelp by 271.2% during the 4th quarter. PNC Financial Services Group Inc. now owns 2,227 shares of the local business review company’s stock valued at $78,000 after buying an additional 1,627 shares in the last quarter. Neuburgh Advisers LLC purchased a new stake in Yelp during the 4th quarter valued at approximately $193,000. Pearl River Capital LLC purchased a new stake in Yelp during the 1st quarter valued at approximately $212,000. Quantamental Technologies LLC purchased a new stake in Yelp during the 1st quarter valued at approximately $218,000. Finally, Parametrica Management Ltd purchased a new stake in Yelp during the 1st quarter valued at approximately $266,000. 95.40% of the stock is owned by institutional investors and hedge funds.

Yelp Company Profile

Yelp Inc operates a platform that connects consumers with local businesses in the United States, Canada, and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others.

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