It’s being reported today that Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer plans to lay off as many as 10% of the company’s current workforce in efforts to reorganize the internet firm. This would equate to over 1,000 employees and comes at a time when activists are pressuring the board to sell off Yahoo’s (NASDAQ:YHOO) core assets.
According to sources close to the company, the majority of the job cuts will take place in Yahoo’s media business, European operations, and their platforms-technology group. Whiile this likely isn’t what activist groups such as Starboard are looking for, such a move likely would at least increase profits for the company’s core business in the short run. Shares of Yahoo! Inc. (NASDAQ:YHOO) are trading down $1.15 or 3.58% in the pre-market this morning. The stock decreased 0.12% or $0.04 during the last trading session, hitting $32.16. Approximately 15,920 shares traded hands. YHOO shares have declined 25.57% since June 3, 2015 and are currently downtrending. It has underperformed the S&P500 by 20.88%.
From a total of 25 analysts covering Yahoo! Inc. (NASDAQ:YHOO) stock, 16 rate it a “Buy”, 0 a “Sell”, and 9 a “Hold”. This means that 64% of the ratings are positive. The highest target price is $62 while the lowest target price is $32. The mean of all analyst targets is $42.71 which is 32.80% above today’s ($32.16) stock price. Yahoo! Inc. was the topic of 59 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. SunTrust maintained shares on December 10 with a “Buy” rating. Cowen & Co maintained shares with a”Market Perform” rating and a $35 target share price in their report from an October 21. FBR Capital maintained YHOO stock in a recent report from December 9 with a “Outperform” rating. RBC Capital Markets maintained the rating on October 21. RBC Capital Markets has a “Sector Perform” rating and a $42 price target on shares. Finally, Oppenheimer maintained the stock with a “Outperform” rating in a report they issued on an October 21.
The institutional sentiment decreased to 0.8 in Q2 2015. It’s down 0.23, from 1.03 in 2015Q2. The ratio is negative, as 113 funds sold all their Yahoo! Inc. shares they owned while 235 reduced their positions. 60 funds bought stakes while 220 increased their total positions. Institutions now own 619.16 million shares which is 2.60% less than the previous share count of 635.68 million in 2015Q2.
Stonehill Capital Management Llc holds 60.89% of its total portfolio in Yahoo! Inc., equating to 5.71 million shares. Zenit Asset Management Ab owns 4.42 million shares representing 22.25% of their total US portfolio. Moreover, Indaba Capital Management L.P. has 21.81% of their total portfolio invested in the company, equating to 2.31 million shares. The United Kingdom-based Davide Leone & Partners Investment Co Llp has a total of 17.99% of their portfolio invested in the stock. Owl Creek Asset Management L.P., a New York-based fund reported 9.97 million shares owned.
Yahoo! Inc. is a technology company