Is Buying Stock Like Yahoo! Inc. Good Idea After Today’s Bullish Options Activity?

 Is Buying Stock Like Yahoo! Inc. Good Idea After Today's Bullish Options Activity?

In today’s session Yahoo! Inc. (YHOO) registered an unusually high (1,052) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the December, 2016 call, expecting serious YHOO increase. With 1,052 contracts traded and 2154 open interest for the Dec, 16 contract, it seems this is a quite bullish bet. The option with symbol: YHOO161216C00045000 closed last at: $1.41 or 6.8% up. About 8.99 million shares traded hands. Yahoo! Inc. (NASDAQ:YHOO) has risen 31.49% since March 1, 2016 and is uptrending. It has outperformed by 22.25% the S&P500.

Analysts await Yahoo! Inc. (NASDAQ:YHOO) to report earnings on October, 18. They expect $0.07 EPS, down 36.36% or $0.04 from last year’s $0.11 per share. YHOO’s profit will be $66.63M for 154.32 P/E if the $0.07 EPS becomes a reality. After $-0.05 actual EPS reported by Yahoo! Inc. for the previous quarter, Wall Street now forecasts -240.00% EPS growth.

Yahoo! Inc. (NASDAQ:YHOO) Ratings Coverage

Out of 33 analysts covering Yahoo! Inc. (NASDAQ:YHOO), 18 rate it a “Buy”, 1 “Sell”, while 14 “Hold”. This means 55% are positive. $62 is the highest target while $31 is the lowest. The $41.08 average target is -4.93% below today’s ($43.21) stock price. Yahoo! Inc. has been the topic of 99 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The rating was maintained by Credit Suisse on Tuesday, July 19 with “Neutral”. The stock of Yahoo! Inc. (NASDAQ:YHOO) earned “Outperform” rating by Oppenheimer on Wednesday, April 20. S&P Research downgraded the stock to “Buy” rating in Tuesday, October 20 report. The company was upgraded on Monday, January 25 by Pivotal Research. On Thursday, August 13 the stock rating was upgraded by Vetr to “Buy”. Barclays Capital maintained the shares of YHOO in a report on Wednesday, September 9 with “Equal-Weight” rating. The stock has “Market Perform” rating given by JMP Securities on Tuesday, July 19. Citigroup maintained the shares of YHOO in a report on Tuesday, July 19 with “Buy” rating. On Tuesday, July 19 the stock rating was maintained by Macquarie Research with “Outperform”. Brean Capital maintained the stock with “Buy” rating in Friday, August 14 report.

Insitutional Activity: The institutional sentiment decreased to 0.83 in Q2 2016. Its down 0.13, from 0.96 in 2016Q1. The ratio dropped, as 61 funds sold all Yahoo! Inc. shares owned while 208 reduced positions. 50 funds bought stakes while 174 increased positions. They now own 608.46 million shares or 13.00% less from 699.40 million shares in 2016Q1.
Guardian Life Ins Of America last reported 0.01% of its portfolio in the stock. Connor Clark And Lunn Invest Mngmt owns 40,000 shares or 0.01% of their US portfolio. The Alabama-based Andra Ap has invested 0.05% in Yahoo! Inc. (NASDAQ:YHOO). Barrett Asset Mgmt Limited Liability Corp holds 0% or 100 shares in its portfolio. Manufacturers Life Insur The has invested 0.05% of its portfolio in Yahoo! Inc. (NASDAQ:YHOO). Sumitomo Life Insurance Com has 0.08% invested in the company for 15,459 shares. Quantbot Lp holds 0.29% of its portfolio in Yahoo! Inc. (NASDAQ:YHOO) for 73,040 shares. Td Asset Mgmt Incorporated has invested 0.04% of its portfolio in Yahoo! Inc. (NASDAQ:YHOO). Oakworth Capital accumulated 0.01% or 500 shares. Franklin Res Incorporated last reported 0.03% of its portfolio in the stock. Gam Ag has 104,840 shares for 0.06% of their US portfolio. Allen Investment Ltd Limited Liability Company accumulated 12,048 shares or 0.04% of the stock. Advisors Asset Mngmt holds 0% of its portfolio in Yahoo! Inc. (NASDAQ:YHOO) for 4,000 shares. Ing Groep Nv holds 175,127 shares or 0.09% of its portfolio. Aviva Public Limited Company reported 526,607 shares or 0.14% of all its holdings.

Insider Transactions: Since May 3, 2016, the stock had 0 buys, and 15 selling transactions for $7.74 million net activity. 339 shares were sold by Utzschneider Lisa, worth $13,950. On Tuesday, May 3 GOLDMAN KENNETH A sold $7.22 million worth of the stock or 200,000 shares.

Yahoo! Inc. , along with its subsidiaries, is engaged in digital information discovery. The company has a market cap of $41.13 billion. The Company’s divisions include the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific. It currently has negative earnings. The Firm focuses on informing, connecting and entertaining its users with its search (Yahoo search), communications, including Yahoo Mail and Yahoo Messenger, and digital content products, including Tumblr, and its four verticals, such as Yahoo News, Yahoo Sports, Yahoo Finance and Yahoo Lifestyle.

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