AAL

Analyst Initiates Bearish Coverage on Yelp Stock

Covering analysts may need to reevaluate their price targets

Deputy Editor
Sep 16, 2024 at 9:20 AM
facebook X logo linkedin


Shares of Yelp Inc (NYSE:YELP) are 2.6% lower before the bell after Bank of America initiated bearish coverage with an "underperform" rating and a $30 price target. The analysts cited declining usage and its ongoing impact on the company's growth outlook.

Coming into today, eight of 10 covering brokerages rated YELP a "hold" or worse. However, the 12-month consensus target price of $41 is a 19.1% premium to Friday's close, which means more price-target cuts could be incoming.

An unwinding of optimism in the options pits could also weigh on Yelp stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 10-day call/put volume ratio of 1.64, which ranks higher than 77% of readings from the past year.

Options look to be an attractive route to go when weighing in on the stock. The equity’s Schaeffer's Volatility Index (SVI) of 27% ranks in the low 6th percentile of the last 12 months. What's more, its Schaeffer's Volatility Scorecard (SVS) is incredibly low right now, sitting at 6 out of 100. This makes the security a prime selling candidate.  

Yelp stock is looking to open today's session just above $33.50, an area that has acted as both pressure and support since the security's late-July drop below the $35.50 level. Shares are also set to drop back below their 10-day moving average after reclaiming support from the trendline on Friday, and YELP is on track to add to a 27.3% year-to-date deficit.

 
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.