While rumors have been flying over the last several weeks pertaining to Yahoo! Inc’s (NASDAQ:YHOO) next move, today we get news of yet another rumor, this time involving the sale of Yahoo’s core assets to Verizon (NYSE:VZ) for $8 billion in cash.
While the rumor, coming from the New York Post’s Josh Kosman, can not be substantiated, it has been known that Verizon has had a keen interest in many of the core assets of Yahoo! Inc. (NASDAQ:YHOO). These assets include many properties in which the communcations and media giant could use. Yahoo Sports, and Finance are two major units which analuysts have argued have quite the value. While this seems like a decent offer, it’s likely that Yahoo’s board will turn it away.
Shares of Yahoo! Inc. (NASDAQ:YHOO) are up $0.47 or 1.58% in the pre-market this morning. The stock closed at $29.75 during the last trading session. It is down 27.28% since June 18, 2015 and is downtrending. It has underperformed the S&P500 by 18.41%.
From a total of 24 analysts covering Yahoo! Inc. (NASDAQ:YHOO) stock, 15 rate it a “Buy”, 0 a “Sell”, and 9 a “Hold”. This means that 63% 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 $42.50 which is 42.86% above today’s ($29.75) stock price. Yahoo! Inc. was the topic of 60 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 dropped, 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