Yahoo! Inc. (YHOO) Shares Drop After Report That Alibaba (BABA) Is Not Interest in Their Internet Assets


Shares of Yahoo! Inc. (NASDAQ:YHOO) are down in morning trading today as a recent report by the Wall Street Journal Indicated that Alibaba (BABA) has no interest in the company’s core internet assets. Yahoo! Inc. (NASDAQ:YHOO) shares had been up this week after reports surfaced that the company’s board was discussing whether or not their internet assets should be sold off, or even if the entire company should be broken up with the capital being returned to shareholders.

While Alibaba certainly isn’t the only possible suitor for these assets, they were one company which made a lot of sense. Other possible buyers could include Verizon (VZ) and IAC/InterActive (IACI) according to the Wall Street Journal.

The stock has fallen 1.30% or $0.47 following this negative news, hitting $35.19 per share. Approximately 4.28M shares traded hands. YHOO shares have declined 16.26% since April 30, 2015 and are currently downtrending. It has underperformed the S&P500 by 16.06%.

From a total of 23 analysts covering Yahoo! Inc. (NASDAQ:YHOO) stock, 16 rate it a “Buy”, 0 a “Sell”, and 7 a “Hold”. This means that 70% 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 $42.45 which is 20.63% above today’s ($35.19) stock price. Yahoo! Inc. was the topic of 55 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on October 21 with a “Outperform” rating. RBC Capital Markets maintained shares with a”Sector Perform” rating and a $42 target share price in their report from an October 21. Cowen & Co maintained YHOO stock in a recent report from October 21 with a “Market Perform” rating. Morgan Stanley maintained the rating on October 21. Morgan Stanley has a “Overweight” rating and a $49 price target on shares. Finally, Jefferies maintained the stock with a “Buy” rating in a report they issued on an October 21.

The institutional sentiment decreased to 1.03 in Q2 2015. It’s down 0.01, from 1.04 in 2015Q1. The ratio fall, as 92 funds sold all their Yahoo! Inc. shares they owned while 232 reduced their positions. 83 funds bought stakes while 251 increased their total positions. Institutions now own 635.68 million shares which is 1.40% less than the previous share count of 644.72 million in 2015Q1.

Indaba Capital Management L.P. holds 27.75% of its total portfolio in Yahoo! Inc., equating to 1.69 million shares. Owl Creek Asset Management L.P. owns 10.70 million shares representing 22.57% of their total US portfolio. Moreover, Stonehill Capital Management Llc has 21.86% of their total portfolio invested in the company, equating to 1.33 million shares. The United Kingdom-based Davide Leone & Partners Investment Co Llp has a total of 12.48% of their portfolio invested in the stock. Courage Capital Management Llc, a Tennessee-based fund reported 550,000 shares owned.

Yahoo! Inc. is a technology company