Update (4:23 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- Yahoo (YHOO - Get Report) fell 1.78% to $40.34, down 73 cents from its previous close of $41.07, at the close of the trading day on Thursday as Chief Operating Officer Henrique de Castro is leaving the company.
The stock had a volume of 15,716,963, just below its average of 16,537,800. It hit a high of $40.75 and a low of $40.11 for the day.
CEO Marissa Mayer brought de Castro into Yahoo from Google (GOOG) slightly more than one year ago to help the company regain some ground against other Internet entities such as Google and Facebook, and rebuild its core advertising business. Yahoo announced de Castro's termination in an extremely brief document filed with the Securities and Exchange Commission.
"Henrique de Castro, Chief Operating Officer of Yahoo! Inc. (the "Company"), will be leaving the Company effective January 16, 2014," the notice reads. "Mr. de Castro will receive the severance benefits provided for in his Employment Offer Letter, dated October 15, 2012, Severance Agreement, dated February 28, 2013, and equity award agreements."
TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, YHOO's share price has jumped by 111.69%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YHOO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for YAHOO INC is currently very high, coming in at 83.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.04% is above that of the industry average.
- YHOO, with its decline in revenue, underperformed when compared the industry average of 9.1%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- YAHOO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, YAHOO INC increased its bottom line by earning $3.28 versus $0.82 in the prior year. For the next year, the market is expecting a contraction of 55.3% in earnings ($1.47 versus $3.28).
- You can view the full analysis from the report here: YHOO Ratings Report