Yelp shares surge as insiders decide not to cash out on accumulated gains
August 31, 2012, 12:09 am TWN
SAN FRANCISCO--Yelp's early backers apparently still have a high opinion of the online business review service, much to Wall Street's relief, after insiders at several other Internet companies dumped some of their shares at the first opportunity.
A Wednesday increase of more than 22 percent in Yelp's stock price signaled the company's major shareholders are holding on to their stakes instead of seizing on a chance to reap the gains that have accumulated from investments made before the 8-year-old service went public in early March.
The first selling window for Yelp's insiders opened Wednesday with the expiration of a rule requiring them to hold on to their stock for 180 days after the company completed its initial public offering.