Craig Saldanha, Chief Product Officer at Yelp Inc. (NYSE:YELP), recently sold 1,000 shares of the company's common stock. The shares were sold at a price of $38.05 each, amounting to a total transaction value of $38,050. Following this transaction, Saldanha holds 184,558 shares in the company. The $2.53 billion market cap company maintains excellent financial health, boasting industry-leading gross margins of 91% and a perfect Piotroski Score of 9, according to InvestingPro analysis, which currently indicates the stock is undervalued.
The sale was conducted under a 10b5-1 trading plan, which Saldanha adopted on August 30, 2024. This type of trading plan allows company insiders to set up a predetermined schedule for selling stocks, helping to avoid potential accusations of insider trading. InvestingPro subscribers can access 10+ additional insights about Yelp, including detailed analysis of insider transactions and comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence.
In other recent news, Yelp Inc. has finalized its acquisition of auto service platform RepairPal for $80 million, marking an expansion into the auto services market. This recent development follows Yelp's third quarter performance, where the company reported a record net revenue of $360 million, a 4% increase year-over-year. Despite declines in restaurant, retail, and other categories, Yelp noted a significant 11% increase in its Services revenue and a 15% growth in the Home services segment.
In addition to the acquisition, Yelp continued its share repurchases, buying back $62.5 million worth of shares in the third quarter. The company anticipates a full-year net revenue between $1.397 billion and $1.402 billion, with adjusted EBITDA expected to be between $341 million to $346 million.
Despite facing challenges in customer retention and ad spending, Yelp remains committed to disciplined expense management and optimizing marketing spend. The company is also leveraging artificial intelligence to enhance customer interaction and ad matching. These recent developments reflect Yelp's strategic approach to navigate a challenging market while pursuing growth through investments and acquisitions.
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