Yelp Inc. (YELP): Puzzling Price Reaction

The stock of Yelp Inc. (NYSE:YELP) has been Reiterated to Hold by Aegis Capital in its latest research note that was published on August 20. YELP has given a price target of $30 by Aegis Capital, with other Wall Street analysts also giving their reports regarding the stock. RBC Capital Mkts analysts again handed out a Outperform rating to YELP stock but they lifted target price for the shares in a flash note to investors on August 09. The price target has been raised from $42 to $44. Analysts at Credit Suisse are sticking to their Outperform recommendation. However, on August 09, they lifted target price for these shares to $46 from $45.Analysts at Credit Suisse, made their first call for the stock with a Outperform rating, according to a research note that dated back to August 09.

Yelp Inc., which has current market capitalization of above $3 Billion, published its last quarter earnings on June 30, 2019.

YELP surged by $2.48 during the normal trading session on Thursday and reaching a high of $37.08 during the day while it closed the day at $36.52. The Yelp stock had a high trading volume of 3.62 million shares on that day, which is high compared to the average daily volume of 1.30M shares. YELP has also gained 9.87% of its value over the past 7 days. However, the stock has surged by 12.93% in the 3 months of the year. Over the past six months meanwhile, it has gained 5.43% while it has added 4.37% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -7.24% from its 3 months high price. However, taking another look at YELP will indicate that it is trading +15.51% away from its 90-day low. Looking at the bigger picture, the Yelp Inc. stock has dropped by -30.44% from its 52-week high while it has surged by +24.51% from its 52-week low price.

On February 26, 2019 Donaker Geoffrey L, Director sold 2000 shares of the company. The average price for that transaction was $38.35 per share, which meant that Donaker Geoffrey L earned $76700 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Chief Accounting Officer, Ramsay Alan selling 19774 shares of this stock on February 21, 2019. The average selling price for the stock was $38.27 per share, with the sold stock accruing $756751. Following this transaction, the Chief Accounting Officer Ramsay Alan now holds 29710 shares of the company, which is worth around $1027966.

Yelp has around 139 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $136 Billion. The Yelp stock is bringing in revenue of over 12 months, which is roughly 247 Billion. Despite all that, Yelp Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 5.15%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 63.25%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 89.75%. Over the past 20 days, Yelp’s Stochastic %K stood at 83.8% while its Stochastic %D was revealed to be 61.72%.