Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Carmen Orr, Chief People Officer at Yelp (NYSE:YELP), disclosed an insider sell on May 20, according to a recent SEC filing.
What Happened: Orr's decision to sell 14,984 shares of Yelp was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $569,402.
Yelp shares are trading down 0.83% at $37.05 at the time of this writing on Tuesday morning.
Get to Know Yelp Better Yelp Inc operates in the online content market based in the United States. It provides a web-based platform and mobile application to bridge the gap between businesses and consumers. The platform assists consumers through product reviews, tips, photos and videos thereby enabling them in making better buying decisions and posting their feedbacks. Its products and services includes Advertising Products and Business Page Products. In addition, it also lets the buyers directly transact with businesses directly through its platform. Yelp generates revenue mainly from the sale of advertising on its website and mobile app to businesses. The company generates majority of the revenue from United States.
Yelp's Financial Performance Positive Revenue Trend: Examining Yelp's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.5% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.
Interpreting Earnings Metrics:
- Gross Margin: The company excels with a remarkable gross margin of 91.78%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Yelp's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.21.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The P/E ratio of 23.8 is lower than the industry average, implying a discounted valuation for Yelp's stock.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.04, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Yelp's EV/EBITDA ratio, lower than industry averages at 13.37, indicates attractively priced shares.
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Unmasking the Significance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Essential Transaction Codes Unveiled Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Yelp's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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