Yelp (NYSE:YELP) Stock Breaks Above 50-Day Moving Average – Time to Sell?

Yelp Inc. (NYSE:YELP)’s stock price crossed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $19.94 and traded as high as $22.52. Yelp shares last traded at $22.0350, with a volume of 2,013,357 shares traded.

Wall Street Analysts Forecast Growth

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

Yelp Stock Up 11.1%

The firm has a market cap of $1.20 billion, a price-to-earnings ratio of 10.54, a P/E/G ratio of 1.78 and a beta of 0.43. The firm’s 50 day moving average price is $19.94 and its two-hundred day moving average price is $23.60. 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 released its quarterly 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. The firm had revenue of $375.52 million for the quarter, compared to analyst estimates of $366.89 million. Yelp had a return on equity of 19.52% and a net margin of 8.59%. The business’s revenue was up 1.4% on a year-over-year basis. During the same quarter last year, the company posted $0.67 earnings per share. As a group, sell-side analysts forecast that Yelp Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Activity at Yelp

In other Yelp news, CFO David A. Schwarzbach sold 7,500 shares of Yelp 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 transaction, 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 sale was disclosed in a document filed with the SEC, which can be accessed 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 the business’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $23.40, for a total value of $89,598.60. Following the completion of the transaction, the chief technology officer directly owned 54,124 shares in the company, valued at approximately $1,266,501.60. The trade was a 6.61% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 28,638 shares of company stock valued at $614,249. 8.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Yelp

Hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP grew its position in Yelp by 20.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,683,927 shares of the local business review company’s stock valued at $66,402,000 after buying an additional 457,261 shares during the last quarter. Bank of America Corp DE raised its position in Yelp by 73.8% during the 1st quarter. Bank of America Corp DE now owns 562,739 shares of the local business review company’s stock worth $13,922,000 after buying an additional 238,993 shares during the last quarter. Principal Financial Group Inc. raised its position in Yelp by 39.3% during the 1st quarter. Principal Financial Group Inc. now owns 522,004 shares of the local business review company’s stock worth $12,914,000 after buying an additional 147,329 shares during the last quarter. Counterpoint Mutual Funds LLC purchased a new position in Yelp during the 3rd quarter worth $8,951,000. Finally, Pacer Advisors Inc. lifted its stake in shares of Yelp by 16.7% in the 1st quarter. Pacer Advisors Inc. now owns 467,195 shares of the local business review company’s stock worth $11,558,000 after acquiring an additional 66,833 shares during the period. 90.11% of the stock is owned by institutional investors and hedge funds.

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.