Yelp (NYSE:YELP) Shares Gap Down – Time to Sell?

Yelp Inc. (NYSE:YELP)’s share price gapped down prior to trading on Friday. The stock had previously closed at $20.52, but opened at $18.50. Yelp shares last traded at $19.9070, with a volume of 463,839 shares traded.

Trending Headlines about Yelp

Here are the key news stories impacting Yelp this week:

• Positive Sentiment: Q3 adjusted earnings were $0.63 per share, above the $0.43 consensus estimate, while revenue of $370.92 million also topped expectations of $368.66 million. Yelp Q3 earnings and revenues surpass estimates
• Neutral Sentiment: Yelp’s FY 2026 revenue guidance of $1.5 billion matched the consensus estimate, so the update did not signal a clear forecast beat. Yelp reports third-quarter 2026 results
• Neutral Sentiment: The company highlighted continued AI development, including more than 30 new features and updates and a more personalized Yelp Assistant; the financial impact was not specified. Yelp reports third-quarter 2026 results
• Negative Sentiment: Revenue fell 1.4% year over year despite the quarterly beat. A Seeking Alpha article also flagged erosion in ad clicks as a potential warning for Yelp’s advertising business, a concern that may have outweighed the stronger-than-expected results and contributed to the stock’s decline. Yelp: Erosion in Ad Clicks Sends A Major Warning

Analyst Ratings Changes

YELP has been the topic of several recent analyst reports. JPMorgan Chase & Co. started coverage on shares of Yelp in a research note on Friday, September 11th. They issued an “underweight” rating and a $19.00 target price on the stock. Zacks Research upgraded shares of Yelp from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 27th. Morgan Stanley reduced their price target on shares of Yelp from $24.00 to $17.00 and set an “underweight” rating for the company in a research report on Tuesday, October 13th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Yelp in a report on Wednesday. Finally, UBS Group reiterated a “neutral” rating on shares of Yelp in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Yelp currently has an average rating of “Hold” and a consensus price target of $25.29.

Yelp Price Performance

The firm has a market capitalization of $1.05 billion, a PE ratio of 9.19, a P/E/G ratio of 1.98 and a beta of 0.43. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.75 and a quick ratio of 1.75. The business’s 50 day moving average is $19.90 and its two-hundred day moving average is $23.56.

Yelp (NYSE:YELP) last released its quarterly earnings results on Thursday, November 5th. The local business review company reported $0.63 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.20. The business had revenue of $370.92 million during the quarter, compared to analysts’ expectations of $368.66 million. Yelp had a net margin of 8.59% and a return on equity of 19.52%. The business’s quarterly revenue was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.61 EPS. As a group, research analysts anticipate that Yelp Inc. will post 1.86 EPS for the current year.

Insider Transactions at Yelp

In other Yelp news, CFO David A. Schwarzbach sold 8,809 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $23.19, for a total value of $204,280.71. Following the completion of the sale, the chief financial officer owned 180,466 shares of the company’s stock, valued at $4,185,006.54. This represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Alexander Coleman Levy sold 3,829 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $23.40, for a total value of $89,598.60. Following the completion of the sale, the chief technology officer directly owned 54,124 shares of the company’s stock, valued at approximately $1,266,501.60. This represents a 6.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 28,638 shares of company stock worth $614,249. 8.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Yelp

A number of hedge funds have recently made changes to their positions in YELP. Dimensional Fund Advisors LP increased its position in shares of Yelp by 20.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,683,927 shares of the local business review company’s stock valued at $66,402,000 after acquiring an additional 457,261 shares during the period. Bank of America Corp DE raised its stake in shares of Yelp by 73.8% during the first quarter. Bank of America Corp DE now owns 562,739 shares of the local business review company’s stock valued at $13,922,000 after acquiring an additional 238,993 shares during the last quarter. Principal Financial Group Inc. boosted its holdings in shares of Yelp by 39.3% during the first quarter. Principal Financial Group Inc. now owns 522,004 shares of the local business review company’s stock worth $12,914,000 after purchasing an additional 147,329 shares during the period. Counterpoint Mutual Funds LLC purchased a new stake in shares of Yelp during the third quarter worth about $8,951,000. Finally, Pacer Advisors Inc. grew its stake in shares of Yelp by 16.7% in the first quarter. Pacer Advisors Inc. now owns 467,195 shares of the local business review company’s stock worth $11,558,000 after purchasing an additional 66,833 shares during the last quarter. 90.11% of the stock is currently owned by institutional investors.

About Yelp

Yelp Inc operates an online platform that helps consumers discover and evaluate local businesses. Through its website and mobile applications, Yelp provides business listings, user-generated reviews, ratings, photos and other information across categories such as restaurants, home services, beauty and fitness, automotive, health and professional services.

The company generates revenue primarily by providing businesses with advertising and marketing solutions designed to increase their visibility and connect them with potential customers.