Shares of Yahoo! Inc. (NASDAQ:YHOO) stock are getting beat down today after the company released earnings numbers as well as plans to lay off 15 percent of its workforce. Shares are trading down big today, in response to this news.
For the quarter, Yahoo! Inc. (NASDAQ:YHOO) reported earnings of $0.13 per share. This came on approximately $1.27 billion in revenue, although there was a disappointing net loss of $4.44 billion. Earnings per share matched Wall Street’s expectations, although revenue beat the Street’s forecast of just $1.19 billion. What is causing the steep stock decline today though, is probably news that they plan to layoff 15 percent of their workforce as a means to help restructure their core business.
“Today, we’re announcing a strategic plan that we strongly believe will enable us to accelerate Yahoo’s transformation,” said CEO Marissa Mayer. “This is a strong plan calling for bold shifts in products and in resources.”
The stock is down 6.85% or $1.99 following the news, hitting $27.07 per share. About 34.14M shares traded hands or 111.79% up from the average. YHOO has declined 25.31% since June 29, 2015 and is downtrending. It has underperformed the S&P500 by 17.80%.
From a total of 24 analysts covering Yahoo! Inc. (NASDAQ:YHOO) stock, 16 rate it a “Buy”, 0 a “Sell”, and 8 a “Hold”. This means that 67% 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 $41.92 which is 54.86% above today’s ($27.07) stock price. Yahoo! Inc. was the topic of 63 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. FBR Capital maintained shares on February 3 with a “Outperform” rating. Cowen & Co maintained shares with a”Market Perform” rating and a $35 target share price in their report from an October 21. Pivotal Research upgraded YHOO stock in a recent report from January 25 to a “Buy” rating. Jefferies maintained the rating on October 21. Jefferies has a “Buy” rating and a $49 price target on shares. Finally, Citigroup downgraded the stock to a “Neutral” rating in a report they issued on a December 9.
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