SAN FRANCISCO— Yelp Inc. (NYSE:YELP) Chief Operating Officer Joseph R. Nachman recently sold 6,999 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $38.57, yielding a total of $269,926. According to InvestingPro data, Yelp maintains impressive financial health with a perfect Piotroski Score of 9 and industry-leading gross profit margins of 91%.
The transaction, which occurred on December 4, was executed under a 10b5-1 trading plan that Nachman adopted earlier this year on March 5. Following this sale, Nachman retains ownership of 229,273 shares in the company. The sales were made in multiple transactions at prices ranging from $38.19 to $38.87 per share. InvestingPro analysis suggests the stock is currently undervalued, with strong fundamentals supported by the company's robust cash position exceeding its debt obligations.
This move comes as part of a pre-arranged trading plan, allowing executives to sell a predetermined number of shares at set times to avoid any potential claims of insider trading. Discover more insights about Yelp's financial health and access 8 additional exclusive ProTips with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report.
In other recent news, Yelp Inc. has reported noteworthy developments. The company has finalized the acquisition of auto service platform RepairPal in an $80 million cash transaction, aiming to expand its presence in the auto services market. This acquisition is expected to enhance Yelp's range of services by integrating a trustworthy auto repair component into its local business platform.
On the financial front, Yelp announced a record net revenue of $360 million for the third quarter of 2024, marking a 4% increase year-over-year. Despite declines in restaurant, retail, and other categories, the company saw growth in its Services revenue, which increased by 11%. Furthermore, the Home services segment revenue grew by 15%, propelled by a 25% rise in requests for quotes.
Yelp continued its share repurchases with $62.5 million worth of shares bought back in the third quarter. For the full year, Yelp projects net revenue between $1.397 billion and $1.402 billion, with adjusted EBITDA expected to be between $341 million to $346 million. These recent developments underscore Yelp's ability to navigate a challenging market while pursuing growth through strategic investments and acquisitions.
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