OneDigital Investment Advisors LLC bought a new stake in shares of Yum! Brands, Inc. (NYSE:YUM – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 7,324 shares of the restaurant operator’s stock, valued at approximately $1,171,000.
A number of other hedge funds also recently modified their holdings of the business. Capital International Investors grew its holdings in shares of Yum! Brands by 20.0% during the fourth quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator’s stock valued at $2,938,139,000 after buying an additional 3,240,190 shares in the last quarter. State Street Corp raised its position in Yum! Brands by 1.0% during the fourth quarter. State Street Corp now owns 13,164,814 shares of the restaurant operator’s stock valued at $1,991,573,000 after buying an additional 124,720 shares during the period. Geode Capital Management LLC lifted its stake in Yum! Brands by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 8,800,382 shares of the restaurant operator’s stock worth $1,334,427,000 after acquiring an additional 121,304 shares in the last quarter. Norges Bank acquired a new stake in Yum! Brands during the 4th quarter worth about $706,799,000. Finally, Morgan Stanley boosted its position in Yum! Brands by 2.4% during the 4th quarter. Morgan Stanley now owns 4,471,127 shares of the restaurant operator’s stock worth $676,392,000 after acquiring an additional 104,512 shares during the period. Hedge funds and other institutional investors own 82.37% of the company’s stock.
Wall Street Analyst Weigh In
A number of brokerages have recently weighed in on YUM. UBS Group reiterated a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. BMO Capital Markets reaffirmed a “market perform” rating and set a $168.00 price objective on shares of Yum! Brands in a research report on Monday, May 4th. Royal Bank Of Canada upped their price objective on shares of Yum! Brands from $165.00 to $170.00 and gave the company a “sector perform” rating in a research note on Friday, July 31st. TD Cowen reiterated a “buy” rating and issued a $180.00 target price on shares of Yum! Brands in a research report on Tuesday, June 16th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $174.00 target price on shares of Yum! Brands in a research note on Friday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $174.65.
Insider Activity
In other news, CEO Aaron Powell sold 6,001 shares of Yum! Brands stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total value of $962,680.42. Following the transaction, the chief executive officer owned 12,003 shares of the company’s stock, valued at $1,925,521.26. This trade represents a 33.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sean Tresvant sold 3,000 shares of the business’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $154.68, for a total transaction of $464,040.00. Following the completion of the sale, the chief executive officer owned 3,140 shares of the company’s stock, valued at $485,695.20. The trade was a 48.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 18,549 shares of company stock valued at $2,890,168. Insiders own 0.14% of the company’s stock.
Yum! Brands Stock Down 1.9%
NYSE YUM opened at $145.36 on Tuesday. The stock has a market capitalization of $39.67 billion, a PE ratio of 18.28, a price-to-earnings-growth ratio of 2.40 and a beta of 0.55. The company has a 50 day moving average price of $153.71 and a two-hundred day moving average price of $156.15. Yum! Brands, Inc. has a 12-month low of $137.33 and a 12-month high of $170.14.
Yum! Brands (NYSE:YUM – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.58 by $0.04. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The business had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.18 billion. During the same quarter in the prior year, the firm posted $1.44 EPS. The firm’s revenue for the quarter was up 12.2% on a year-over-year basis. As a group, equities analysts anticipate that Yum! Brands, Inc. will post 6.42 EPS for the current year.
Yum! Brands declared that its Board of Directors has approved a stock repurchase program on Tuesday, June 16th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits the restaurant operator to buy up to 9.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.
Yum! Brands Profile
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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