In a recent filing with the Securities and Exchange Commission, Yelp Inc. (NYSE:YELP) disclosed that its Chief Technology Officer, Eaton (NYSE:ETN) Sam, executed a series of stock transactions. According to InvestingPro data, Yelp maintains impressive financial health with a gross profit margin of 91% and holds more cash than debt on its balance sheet. On February 21, Sam sold a total of 21,989 shares of Yelp common stock, generating proceeds of approximately $785,018. The shares were sold at prices ranging from $35.6644 to $36.6281 per share. InvestingPro analysis suggests Yelp is currently undervalued, with the stock trading at an attractive PEG ratio of 0.45.
Prior to these transactions, on February 20, Sam had shares withheld to satisfy tax obligations related to restricted stock units, which amounted to 27,741 shares valued at $1,015,043 at a price of $36.59 per share.
These sales were conducted under a 10b5-1 trading plan, which Sam adopted on February 21, 2024. Following these transactions, Sam holds 153,159 shares of Yelp stock.
In other recent news, Yelp Inc. reported impressive fourth-quarter earnings, surpassing expectations with an adjusted earnings per share of $0.62, compared to the analyst estimate of $0.53. The company’s revenue for the quarter reached $361.95 million, exceeding the consensus estimate of $351.61 million. For the full year 2024, Yelp achieved a 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, offsetting a 3% decline in restaurant, retail, and other categories. Yelp’s net income for 2024 rose 34% year-over-year to $133 million, with an adjusted EBITDA growth of 8% to $358 million.
Additionally, Craig-Hallum raised Yelp’s stock price target to $48.00, up from $44.00, while maintaining a Buy rating, citing optimism about Yelp’s growth in the Home Services sector. The firm emphasized Yelp’s strategic investments in artificial intelligence and lead generation, which are driving strong results despite macroeconomic pressures. Yelp’s guidance for 2025 projects net revenue between $1.47 billion and $1.485 billion, aligning with analyst expectations. CEO Jeremy Stoppelman highlighted the company’s product-led strategy and the introduction of over 80 new features as key drivers of growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.