Insider Selling: Yum! Brands (NYSE:YUM) CEO Sells $44,436.34 in Stock

Yum! Brands, Inc. (NYSE:YUMGet Free Report) CEO Scott Mezvinsky sold 277 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $160.42, for a total transaction of $44,436.34. Following the completion of the sale, the chief executive officer owned 483 shares in the company, valued at $77,482.86. This represents a 36.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Scott Mezvinsky also recently made the following trade(s):

  • On Monday, June 1st, Scott Mezvinsky sold 261 shares of Yum! Brands stock. The stock was sold at an average price of $148.14, for a total value of $38,664.54.
  • On Friday, May 1st, Scott Mezvinsky sold 277 shares of Yum! Brands stock. The shares were sold at an average price of $160.48, for a total value of $44,452.96.

Yum! Brands Trading Up 0.4%

Shares of NYSE:YUM traded up $0.64 during mid-day trading on Wednesday, hitting $160.50. 837,712 shares of the company traded hands, compared to its average volume of 1,949,809. The stock has a 50-day moving average price of $153.69 and a two-hundred day moving average price of $156.19. Yum! Brands, Inc. has a 12-month low of $137.33 and a 12-month high of $169.39. The stock has a market cap of $44.24 billion, a P/E ratio of 25.92, a P/E/G ratio of 2.02 and a beta of 0.57.

Yum! Brands (NYSE:YUMGet Free Report) last announced its earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 EPS for the quarter, beating the consensus estimate of $1.39 by $0.11. Yum! Brands had a net margin of 20.48% and a negative return on equity of 23.51%. The company had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter in the prior year, the company posted $1.30 earnings per share. The firm’s revenue for the quarter was up 15.2% on a year-over-year basis. As a group, analysts expect that Yum! Brands, Inc. will post 6.75 earnings per share for the current year.

Yum! Brands Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Wednesday, May 27th were given a dividend of $0.75 per share. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $3.00 annualized dividend and a dividend yield of 1.9%. Yum! Brands’s dividend payout ratio (DPR) is currently 48.39%.

Yum! Brands declared that its Board of Directors has authorized a share repurchase program on Tuesday, June 16th that allows the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to reacquire up to 9.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Yum! Brands

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in Yum! Brands by 8.0% during the fourth quarter. Brighton Jones LLC now owns 7,861 shares of the restaurant operator’s stock valued at $1,055,000 after purchasing an additional 583 shares during the last quarter. First Trust Advisors LP increased its stake in shares of Yum! Brands by 124.5% in the second quarter. First Trust Advisors LP now owns 151,316 shares of the restaurant operator’s stock worth $22,422,000 after purchasing an additional 83,916 shares in the last quarter. CIBC Asset Management Inc lifted its stake in shares of Yum! Brands by 10.0% during the 2nd quarter. CIBC Asset Management Inc now owns 117,824 shares of the restaurant operator’s stock valued at $17,447,000 after buying an additional 10,755 shares in the last quarter. Treasurer of the State of North Carolina lifted its stake in shares of Yum! Brands by 1.0% during the 2nd quarter. Treasurer of the State of North Carolina now owns 130,205 shares of the restaurant operator’s stock valued at $19,294,000 after buying an additional 1,256 shares in the last quarter. Finally, HUB Investment Partners LLC boosted its holdings in Yum! Brands by 59.1% in the 2nd quarter. HUB Investment Partners LLC now owns 2,319 shares of the restaurant operator’s stock worth $344,000 after buying an additional 861 shares during the period. Hedge funds and other institutional investors own 82.37% of the company’s stock.

Wall Street Analyst Weigh In

YUM has been the topic of several research analyst reports. Morgan Stanley raised Yum! Brands from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $180.00 to $185.00 in a research report on Wednesday, June 3rd. Weiss Ratings cut Yum! Brands from a “buy (b+)” rating to a “buy (b)” rating in a research note on Wednesday, May 6th. Evercore restated an “outperform” rating on shares of Yum! Brands in a report on Tuesday, June 16th. Citigroup lifted their price objective on shares of Yum! Brands from $174.00 to $175.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. Finally, BMO Capital Markets reissued a “market perform” rating and set a $168.00 target price on shares of Yum! Brands in a research report on Monday, May 4th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $176.12.

View Our Latest Analysis on Yum! Brands

Yum! Brands Company Profile

(Get Free Report)

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.

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