Yelp Inc. (NYSE:YELP) operates as an online local guide that connects people primarily with boutiques, mechanics, restaurants, and dentists.
Insider selling during the last 30 days
Here is a table of Yelp's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Jeremy Stoppelman||CEO||April 15-23||27,028||Yes||4,647,482 shares||0.6%|
|Robert Krolik||CFO||April 21||17,500||Yes||68,243 shares + 40,000 options||13.9%|
|Geoffrey Donaker||COO||April 10||25,000||Yes||0 shares + 1,025,514 options||2.4%|
|Joseph Nachman||SVP||April 7||45,000||Yes||0 shares + 234,884 options||16.1%|
There have been 114,528 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Yelp's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 16,308,254 shares sold, and there have been zero shares purchased by insiders since January 2013.
Yelp reported the full-year 2013 financial results on February 5 with the following highlights:
|Net loss||$10.1 million|
The four insiders sold their shares after these results.
Yelp's guidance is as follows:
|Revenue||$73.5-$74.5 million||$353-$358 million|
|Adjusted EBITDA||$8-$9 million||$54-$58 million|
|Qtrly Rev Growth (yoy):||0.72||0.10||-0.01|
|PEG (5 yr expected):||-26.68||N/A||2.67|
Yelp has the highest P/S ratio among these three companies.
Here is a table of these competitors' insider activities during the last 30 days.
|Company||Insider buying / shares||Insider selling / shares|
Only Yelp has seen intensive insider selling during the last 30 days.
There have been four different insiders selling Yelp, and there have not been any insiders buying Yelp during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Yelp has an insider ownership of 11.16%.
Yelp has a $47 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $47 price target. I would place a stop loss at $102, which is the all-time high. The four main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, negative earnings, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in YELP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.