SAN FRANCISCO—David A. Schwarzbach, the Chief Financial Officer of Yelp Inc. (NYSE:YELP), recently sold 10,000 shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The transaction, which took place on February 26, 2025, was executed under a 10b5-1 trading plan adopted by Schwarzbach on August 29, 2024. According to InvestingPro data, the company maintains impressive gross profit margins of 91% and holds a "GREAT" financial health rating.
The shares were sold at a weighted average price of $34.8042, with the total transaction amounting to approximately $348,042. These shares were sold in multiple transactions at prices ranging from $34.39 to $35. Following the sale, Schwarzbach retains ownership of 242,916 shares in the company. The stock is currently trading near its 52-week low, and InvestingPro analysis suggests the stock may be undervalued.
This sale is part of a prearranged trading plan, allowing insiders of publicly traded corporations to sell a predetermined number of shares at a specified time. This plan is designed to prevent any potential accusations of insider trading. Notably, while this insider sale occurred, InvestingPro data shows management has been actively buying back shares, and the company maintains a strong liquidity position with a current ratio of 3.34. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.
In other recent news, Yelp Inc. reported fourth-quarter earnings that surpassed expectations, with adjusted earnings per share reaching $0.62, compared to the analyst estimate of $0.53. The company’s revenue for the quarter was $361.95 million, exceeding the consensus estimate of $351.61 million. For the full year 2024, Yelp achieved record net revenue of $1.41 billion, marking a 6% increase year-over-year. Advertising revenue from services categories grew by 11% year-over-year to $879 million, which helped offset a 3% decline in advertising revenue from restaurant, retail, and other categories.
Yelp’s net income for 2024 increased by 34% year-over-year to $133 million, with an adjusted EBITDA growth of 8% year-over-year to $358 million. Looking forward, the company provided a positive outlook for 2025, projecting net revenue between $1.47 billion and $1.485 billion, aligning with analyst expectations. In addition, Craig-Hallum raised Yelp’s stock price target from $44 to $48, maintaining a Buy rating. The firm cited Yelp’s strong growth in the Home Services sector and successful investments in artificial intelligence as key factors. Analyst Jason Kreyer expressed confidence in Yelp’s ability to achieve mid-single-digit revenue growth and double-digit earnings growth despite ongoing consumer pressures.
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