Yahoo! Inc. (NASDAQ:YHOO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Monday. The brokerage presently has a $52.00 target price on the digital content provider’s stock. Zacks Investment Research’s target price points to a potential upside of 12.07% from the company’s current price.
According to Zacks, “Yahoo! Inc. is one of the leading providers of web-based services and advertisements. Over the past one year, the stock has outperformed the Zacks Internet-Services Industry. The last quarter earnings results showed signs of a business revamp with Mavens revenue ramping up in the last two quarters. Also, management has made some progress on product and acquisition strategies but there appears to be a lot of work left to be done. The updated Verizon and Yahoo deal has been discounted by $350 million. Verizon will now pay a total of $4.48 billion for Yahoo’s core business. However, the deal is still expected to be completed by the second quarter of 2017. Issues in the search business, recent security breaches and Yahoo’s inability to deal with competition remain concerns.”
Several other research analysts have also recently weighed in on the stock. Cantor Fitzgerald set a $53.00 price target on shares of Yahoo! and gave the company a “buy” rating in a research report on Tuesday, February 28th. Credit Suisse Group AG set a $52.00 price target on shares of Yahoo! and gave the company a “neutral” rating in a research report on Thursday, February 23rd. Vetr cut shares of Yahoo! from a “hold” rating to a “sell” rating and set a $44.55 target price on the stock. in a research report on Wednesday, February 22nd. Jefferies Group LLC reaffirmed a “hold” rating and issued a $48.00 target price on shares of Yahoo! in a research report on Wednesday, February 22nd. Finally, Morgan Stanley set a $47.00 target price on shares of Yahoo! and gave the company a “neutral” rating in a research report on Thursday, February 2nd. One research analyst has rated the stock with a sell rating, twenty have assigned a hold rating and eleven have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $44.71.
Yahoo! (NASDAQ:YHOO) opened at 45.87 on Monday. Yahoo! has a 52-week low of $34.62 and a 52-week high of $47.19. The stock’s market cap is $43.87 billion. The firm’s 50-day moving average is $45.69 and its 200-day moving average is $42.76.
Yahoo! (NASDAQ:YHOO) last announced its quarterly earnings results on Monday, January 23rd. The digital content provider reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.04. The firm had revenue of $960.10 million for the quarter, compared to analysts’ expectations of $1.38 billion. Yahoo! had a negative net margin of 4.15% and a positive return on equity of 0.65%. The company’s revenue was down 4.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.13 EPS. Equities research analysts predict that Yahoo! will post $0.68 earnings per share for the current year.
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In other Yahoo! news, CRO Lisa Utzschneider sold 974 shares of the firm’s stock in a transaction on Wednesday, March 22nd. The stock was sold at an average price of $45.75, for a total value of $44,560.50. Following the completion of the sale, the executive now owns 576,260 shares of the company’s stock, valued at $26,363,895. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In the last three months, insiders sold 2,987 shares of company stock valued at $126,722. 9.20% of the stock is owned by corporate insiders.
A number of large investors have recently added to or reduced their stakes in the stock. BlackRock Institutional Trust Company N.A. increased its stake in Yahoo! by 1.7% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 22,521,452 shares of the digital content provider’s stock worth $970,675,000 after buying an additional 378,363 shares during the period. Canyon Capital Advisors LLC increased its stake in Yahoo! by 12.0% in the third quarter. Canyon Capital Advisors LLC now owns 20,803,565 shares of the digital content provider’s stock worth $896,634,000 after buying an additional 2,231,162 shares during the period. Iridian Asset Management LLC CT increased its stake in Yahoo! by 8.2% in the fourth quarter. Iridian Asset Management LLC CT now owns 9,690,965 shares of the digital content provider’s stock worth $374,750,000 after buying an additional 730,813 shares during the period. Hudson Bay Capital Management LP increased its stake in Yahoo! by 5.1% in the third quarter. Hudson Bay Capital Management LP now owns 7,865,533 shares of the digital content provider’s stock worth $339,004,000 after buying an additional 380,087 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in Yahoo! by 0.6% in the third quarter. Bank of New York Mellon Corp now owns 7,329,597 shares of the digital content provider’s stock worth $315,905,000 after buying an additional 40,697 shares during the period. 78.06% of the stock is owned by institutional investors.
Yahoo! Inc (Yahoo), along with its subsidiaries, is engaged in digital information discovery. The Company’s segments include the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific. The Company focuses on informing, connecting and entertaining its users with its search (Yahoo search), communications, including Yahoo Mail and Yahoo Messenger, and digital content products, including Tumblr, and its four verticals, such as Yahoo News, Yahoo Sports, Yahoo Finance and Yahoo Lifestyle.
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