Sam Eaton (NYSE:ETN), Chief Technology Officer of Yelp Inc. (NYSE:NYSE:YELP), recently sold 10,744 shares of the company. The shares were sold at an average price of $35.1154 per share, resulting in a total transaction value of $377,279. This sale was executed as part of a pre-established 10b5-1 trading plan adopted by Eaton earlier this year.
In a separate transaction, Eaton also had 11,947 shares withheld to cover tax obligations related to the vesting of restricted stock units. Following these transactions, Eaton's direct holdings in the company amount to 122,480 shares.
In other recent news, Yelp Inc. announced mixed results for its third quarter of 2024, with a record net revenue of $360 million, marking a 4% increase year over year. Despite a 6% decline in restaurant, retail, and other categories, the company saw an 11% rise in Services revenue and a 15% growth in Home services segment revenue, propelled by a 25% rise in requests for quotes. Yelp also revealed plans to acquire RepairPal for approximately $80 million, a move aimed at expanding its auto services advertising vertical.
The company's full-year net revenue is projected between $1.397 billion and $1.402 billion, with adjusted EBITDA expected to be between $341 million to $346 million. Yelp has also continued its share repurchases with $62.5 million worth of shares bought back in Q3. Yelp anticipates a full-year net revenue decrease at the midpoint but remains committed to disciplined expense management and optimizing marketing spend.
These recent developments reflect Yelp's strategic approach to navigate a challenging market while pursuing growth through strategic investments and acquisitions.
InvestingPro Insights
While Sam Eaton's recent stock sale might raise eyebrows, a closer look at Yelp's financials reveals a company with solid fundamentals. According to InvestingPro data, Yelp boasts a market capitalization of $2.34 billion and a P/E ratio of 20.62, suggesting a reasonable valuation relative to its earnings.
One of the key InvestingPro Tips highlights that Yelp holds more cash than debt on its balance sheet, indicating strong financial health. This aligns with another tip noting that the company's liquid assets exceed short-term obligations, providing a cushion for operational flexibility.
Yelp's impressive gross profit margin of 91.38% for the last twelve months as of Q3 2024 underscores its efficient business model. This is complemented by an InvestingPro Tip pointing out Yelp's high shareholder yield, suggesting the company is returning value to shareholders through means such as share buybacks.
It's worth noting that management has been aggressively buying back shares, as indicated by another InvestingPro Tip. This could be seen as a vote of confidence in the company's future prospects, potentially offsetting concerns about insider selling.
For investors seeking a deeper understanding of Yelp's financial position, InvestingPro offers 11 additional tips not mentioned here, providing a comprehensive view of the company's strengths and potential challenges.
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