It’s been one heck of a ride for Yahoo! Inc. (NASDAQ:YHOO) shareholders as the company decides what to do with their Alibaba stake, Yahoo Japan stake, and core assets. Meanwhile, CEO Marissa Mayer seems steadfast on boosting earnings of their core assets. All the while, activist investors continue calls for Mayer to step down or break up the company.
As a part of Mayer’s plan to boost earnings, there are reports that she will unveil a cost cutting plan following the company’s report of their fourth quarter earnings on Tuesday. Reports by the Wall Street Journal indicate that Mayer plans to reduce Yahoo! Inc’s (NASDAQ:YHOO) workforce by as much as 15% and perhaps close several of the company’s units. It will be interesting to see if these moves are made as a way to attract new buyout candidates or if they are solely to boost their company’s future income stream.
The stock is down 1.12% or $0.33 following the news, hitting $29.18 per share. Approximately 6.29M shares traded hands. YHOO shares have declined 28.15% since June 25, 2015 and are currently downtrending. It has underperformed the S&P500 by 19.28%.
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 45.65% above today’s ($29.18) 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