On October 16, 2023, David Schwarzbach, the Chief Financial Officer of Yelp Inc (YELP, Financial), sold 2,750 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 26,250 shares and purchased none.
David Schwarzbach joined Yelp Inc in February 2020 as the CFO. He is responsible for leading the company's finance, strategy, and corporate development functions. Prior to Yelp, Schwarzbach served as the CFO of Optimizely, a leading digital experience optimization platform. His experience and leadership have been instrumental in Yelp's financial operations and strategic initiatives.
Yelp Inc is a multinational corporation headquartered in San Francisco, California. It develops, hosts, and markets Yelp.com and the Yelp mobile app, which publish crowd-sourced reviews about businesses. It also operates an online reservation service called Yelp Reservations.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities. Over the past year, there have been 37 insider sells and no insider buys for Yelp Inc.
The above image shows the trend of insider trading activities. It is evident that the insider's sell activities have been consistent, which could be a signal to investors about the company's future stock performance.
On the day of the insider's recent sell, Yelp Inc's shares were trading at $42.37, giving the company a market cap of $2.95 billion. The price-earnings ratio was 71.62, significantly higher than the industry median of 19.39 and the company's historical median price-earnings ratio.
Despite the high price-earnings ratio, Yelp Inc's stock is considered fairly valued based on its GuruFocus Value of $44.58, with a price-to-GF-Value ratio of 0.95.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's consistent sell activities over the past year could be a signal to investors about Yelp Inc's future stock performance. However, with a fairly valued stock based on its GF Value, investors should conduct further research and consider other factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
