Yext, Inc. (NYSE:YEXT - Get Free Report)'s share price gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $6.54, but opened at $6.75. Yext shares last traded at $6.70, with a volume of 63,467 shares trading hands.

Insider Buying Activity

Specifically, Director Seth H. Waugh bought 32,600 shares of the company's stock in a transaction dated Thursday, September 19th. The stock was bought at an average price of $6.65 per share, for a total transaction of $216,790.00. Following the completion of the transaction, the director now directly owns 153,350 shares in the company, valued at approximately $1,019,777.50. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

This purchase increases Waugh's holdings to a total of 153,350 shares in Yext, Inc., signaling a strong vote of confidence in the company's future prospects. The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission.

Analyst Ratings

A number of analysts recently commented on YEXT shares. Needham & Company LLC upgraded Yext from a "hold" rating to a "buy" rating and set a $8.00 price objective for the company in a research report on Thursday, September 5th. DA Davidson boosted their price target on shares of Yext from $5.50 to $5.75 and gave the stock a "neutral" rating in a research note on Thursday, September 5th. Finally, Roth Mkm restated a "buy" rating and issued a $7.50 price objective (down from $8.00) on shares of Yext in a report on Thursday, September 5th.

Recent Financial Performance

Yext (NYSE:YEXT - Get Free Report) last announced its quarterly earnings results on Wednesday, September 4th. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.02. Yext had a negative return on equity of 3.35% and a negative net margin of 1.68%. The company had revenue of $97.90 million during the quarter, compared to the consensus estimate of $98.15 million. During the same period in the prior year, the company earned ($0.03) earnings per share. The company's revenue for the quarter was down 4.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Yext, Inc. will post 0.08 earnings per share for the current fiscal year.

Institutional Investor Activity

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Lynrock Lake LP raised its position in Yext by 23.8% during the second quarter. Lynrock Lake LP now owns 8,267,487 shares of the company's stock worth $44,231,000 after acquiring an additional 1,591,791 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in Yext by 12.5% during the second quarter. The Manufacturers Life Insurance Company now owns 4,734,880 shares of the company's stock worth $25,332,000 after purchasing an additional 526,043 shares during the period. The Manufacturers Life Insurance Company increased its position in Yext by 5.5% during the fourth quarter. The Manufacturers Life Insurance Company now owns 3,373,576 shares of the company's stock worth $19,870,000 after buying an additional 176,063 shares during the last quarter. Federated Hermes Inc. raised its stake in Yext by 86.6% in the second quarter. Federated Hermes Inc. now owns 2,748,420 shares of the company's stock valued at $14,704,000 after buying an additional 1,275,348 shares during the period. Finally, Invenomic Capital Management LP lifted its position in shares of Yext by 67.0% in the first quarter. Invenomic Capital Management LP now owns 1,503,960 shares of the company's stock valued at $9,069,000 after buying an additional 603,598 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Yext's Business

Yext, Inc organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services.

Yext's Recent Developments

In other recent news, Yext Inc . introduced Yext Social, an AI-powered social media management tool aimed at assisting brands in managing their local presence. This new offering expands on Yext's digital presence platform, employing advanced AI to streamline content creation and engagement strategies. The tool also provides actionable insights to brands, helping them to refine their strategies and maximize their return on investment.

Yext's recent financial performance showed a quarter-over-quarter improvement in Direct Annual Recurring Revenue (ARR) by $1.3 million to $313.4 million, and a better-than-expected EBITDA of $9.8 million, surpassing DA Davidson's forecast. DA Davidson maintained a Neutral rating on Yext, while Roth/MKM maintained a Buy rating but reduced its price target from $8.00 to $7.50. Needham, on the other hand, upgraded Yext shares from Hold to Buy, setting a new price target at $8.00.

These developments follow the recent acquisition of Hearsay Systems by Yext, which has led to a revision in the company's full-year revenue outlook. The acquisition is expected to contribute to Yext's growth, offering opportunities for upselling and consolidation. Yext's management projects an acceleration of ARR and expansion of EBITDA margins by the end of fiscal year 2025. These are the latest developments in Yext's strategic transformation, which emphasizes flexibility and customer-centricity in its approach to growth.

Yext's Financial Outlook

Following the notable insider buying by director Seth H. Waugh, Yext, Inc. (NYSE:YEXT) continues to garner attention from investors. Key metrics from InvestingPro provide a deeper look into the company's financial health and market performance. As of the last twelve months leading up to Q2 2025, Yext holds a market capitalization of $836.6 million, with a substantial gross profit margin of 77.9%, reflecting its ability to maintain cost-effective operations amidst its revenue streams.

While the company did not exhibit growth in revenue, with a slight decline of 1.76%, the InvestingPro Tips indicate an expected net income growth this year. This could signal a potential turnaround for Yext, which aligns with the confidence demonstrated by Waugh's purchase. Furthermore, Yext's financial stability is underscored by its position of holding more cash than debt on its balance sheet, which can be a reassuring sign for investors considering the company's long-term sustainability.

Investors may also find the recent price performance intriguing, with Yext showing a strong return over the last month at 23.81% and over the last three months at 30.26%. Although the company does not pay a dividend, which might be a consideration for income-focused investors, the potential for profitability within the year, as predicted by analysts, might offer growth opportunities for those with a longer investment horizon.

Yext's Future

For those interested in further insights, there are an additional 6 InvestingPro Tips available, which include analyst revisions and profitability outlooks. These tips can be explored in detail at https://www.investing.com/pro/YEXT, providing a comprehensive analysis to better inform investment decisions.

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