Citigroup Issues a Downgrade on Yahoo! (NASDAQ:YHOO) Shares. What’s Next?


Yahoo! (NASDAQ:YHOO) Receives a Downgrade

Shares of Yahoo! (NASDAQ:YHOO) were lowered to a Neutral by stock analysts at Citigroup. YHOO’s rating of a Buy has been discontinued.

From a total of 36 analysts covering Yahoo! Inc. (NASDAQ:YHOO) stock, 25 rate it a ”Buy”, 0 a “Sell”, and 17 a ”Hold”. This means that 60% of the ratings are positive. The highest target price is $53 while the lowest target price is $35. The mean of all analyst targets is $42.03 with a 26.34% above today’s ($33.6) stock price. Yahoo! Inc. was the topic of 56 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Nomura downgraded shares on December 2 to “Neutral” rating. Mizuho downgraded shares to “Neutral” rating and $37 target share price in a report from an October 21. B. Riley & Co downgraded YHOO stock in a recent report from October 21 to “Neutral” 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, Credit Suisse maintained the stock with “Neutral” rating in a report issued on an October 21.

Approximately 20.68M shares of stock traded hands or 34.02% up from the average. Yahoo! Inc. (NASDAQ:YHOO) has declined 16.35% since May 6, 2015 and is downtrending. It has underperformed by 15.55% the S&P500.

The overall sentiment of institutions has decreased to 0.8 in Q2 2015. Its down 0.23, from 1.03 in 2015Q2. The ratio turned negative, as 113 institutions have sold all the shares of Yahoo! Inc. that they owned while 235 funds have taken shares off the table. 60 funds have purchased shares for the first time while 220 added to their positions. These institutions now hold 619.16 million shares or 2.60% less than the 635.68 million shares they owned in 2015Q2.

The Fund Stonehill Capital Management Llc currently is holding shares equating to 60.89% of its total portfolio in Yahoo! Inc. representing a total of 5.71 million shares. Another fund,Zenit Asset Management Ab, is holding a total of 4.42 million shares equating to 22.25% of their holdings. Additionally, Indaba Capital Management L.P. has a 2.31 million share stake in Yahoo! Inc. which represents 21.81% of their total portfolio. The Fund, Davide Leone & Partners Investment Co Llp, based out of United Kingdom, has also built up a stake in the stock, which represents a total of 17.99% of their total portfolio. Finally Owl Creek Asset Management L.P., a fund which is based in the state of New York reported a total holdings of 9.97 million shares.

Yahoo! Inc. is a technology company

According to Zacks Investment Research, “Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services. As one of the first online navigational guides to the World Wide Web, Yahoo! is one of the leading guides in terms of traffic, advertising, and household and business user reach. The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!’s clients.” Get a free copy of the Zacks research report on Yahoo! Inc. (YHOO).