Yahoo! Inc (NASDAQ:YHOO) (TREND ANALYSIS) down after Capstone says spinoff unlikely to be approved. Shares of Yahoo (YHOO) are lower after Capstone analysts Max Reale and David Barrosse said they believe the IRS, with support from the Treasury Department, is unlikely to approve the proposed tax-free spinoff of the company’s stake in Alibaba (BABA). Reale and Barrosse told investors in a research note dated yesterday that Yahoo shares are mostly pricing in the tax-free spinoff occurring as planned. An unfavorable change in the tax code could result in over $11 per Yahoo share for tax expense on the Alibaba transaction alone, they wrote. Shares of Yahoo are down $1.35 to $40.72 in afternoon trading :theflyonthewall.com
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Yahoo! Inc (NASDAQ:YHOO) stock is currently trading 21.91% below its 52-week-high, 24.78% above its 52-week-low. The 1-year stock price history is in the range of $32.93 – $52.62. Yahoo! Inc (YHOO) has a price to earnings ratio of 5.61 versus Technology sector average of 20.55. YHOO stock price has underperformed the Nasdaq by 22.8%. The Web Portals & ISP company is currently valued at $38.56 billion. The stock has a 50-day moving average of $43.21 and a 200-day moving average of $45.68.
Yahoo! Inc (YHOO) current short interest stands at 41.1 million shares. It has increased by 12% from the same period of last month. Around 5% of the company’s shares, which are float, are short sold. With a 10-days average volume of 9.92 million shares, the number of days required to cover the short positions stand at 4.2 days.
The company is expected to announce next quarter earnings on July 21, at consensus estimate of $0.05. Yahoo! Inc (YHOO) reported last quarter earnings on April 21. The Web Portals & ISP company announced earnings per share of $0.07 against a consensus Street estimate of $0.07, matching the average estimate. This corresponds to a decrease of $0.23 compared to the same quarter of the previous fiscal year.
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There are currently forty analysts that cover Yahoo! Inc stock. Of those forty, twenty-six have a Buy rating, fourteen have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $54.24.
A recent analyst activity consisted of Evercore Partners downgrading their Buy rating to Hold on May 27. Evercore Partners decreased price target from $55 to $48. This corresponds to a 16.82% upside from the last closing price. On the date of report, the stock closed at $43.38.
Raymond James reiterated their Outperform stance on May 20, and decreased their price target from $58 to $51. This corresponds to a 24.12% upside from the last closing price. On the date of report, the stock closed at $42.79.
Another research firm was Tigress Financial who downgraded their Buy rating to Neutral on May 1. On the date of report, the stock closed at $42.51.
Yahoo! Inc., is a global Internet media company that offers communications, content, and a community platform that delivers consumer experiences and advertising solutions across digitial screens. The Company’s site includes a hierarchical, subject-based directory of Web sites, which enables users to locate and access information.