Paralel Advisors LLC acquired a new position in shares of Yum! Brands, Inc. (NYSE:YUM – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 425,000 shares of the restaurant operator’s stock, valued at approximately $67,940,000. Yum! Brands makes up 2.6% of Paralel Advisors LLC’s investment portfolio, making the stock its 11th largest holding.
Several other large investors also recently made changes to their positions in YUM. Steph & Co. increased its holdings in Yum! Brands by 107.5% during the first quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock worth $26,000 after buying an additional 86 shares during the last quarter. Edmond DE Rothschild Holding S.A. acquired a new stake in Yum! Brands in the second quarter valued at $27,000. MV Capital Management Inc. acquired a new stake in Yum! Brands in the fourth quarter valued at $28,000. Manning & Napier Advisors LLC bought a new position in shares of Yum! Brands in the 1st quarter valued at about $28,000. Finally, Wiser Advisor Group LLC acquired a new position in shares of Yum! Brands during the 3rd quarter worth about $28,000. Institutional investors and hedge funds own 82.37% of the company’s stock.
Wall Street Analyst Weigh In
A number of equities research analysts have recently issued reports on the stock. TD Cowen reaffirmed a “buy” rating and issued a $180.00 target price on shares of Yum! Brands in a report on Tuesday, June 16th. Royal Bank Of Canada lifted their price target on Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a report on Friday, July 31st. Morgan Stanley raised Yum! Brands from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $180.00 to $185.00 in a research report on Wednesday, June 3rd. UBS Group restated a “buy” rating on shares of Yum! Brands in a research note on Thursday, June 18th. Finally, Weiss Ratings cut Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. Twelve research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $174.65.
Insiders Place Their Bets
In related news, CEO Scott Mezvinsky sold 268 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $41,044.20. Following the completion of the sale, the chief executive officer directly owned 483 shares in the company, valued at $73,971.45. The trade was a 35.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Eric Russell sold 7,961 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $1,219,227.15. Following the transaction, the vice president owned 11,960 shares in the company, valued at $1,831,674. The trade was a 39.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 18,549 shares of company stock worth $2,890,168 over the last three months. 0.14% of the stock is currently owned by corporate insiders.
Yum! Brands Stock Up 4.3%
Yum! Brands stock opened at $152.24 on Friday. The company’s 50-day moving average price is $153.45 and its two-hundred day moving average price is $156.00. The stock has a market cap of $41.55 billion, a P/E ratio of 19.15, a P/E/G ratio of 2.37 and a beta of 0.55. Yum! Brands, Inc. has a twelve month low of $137.33 and a twelve 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 earnings per share (EPS) for the quarter, topping 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 company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.18 billion. During the same quarter in the previous year, the company posted $1.44 earnings per share. The business’s revenue was up 12.2% on a year-over-year basis. Equities analysts anticipate that Yum! Brands, Inc. will post 6.42 earnings per share for the current fiscal year.
Yum! Brands announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, June 16th that authorizes the company to repurchase $4.00 billion in shares. This repurchase authorization authorizes the restaurant operator to purchase up to 9.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.
Key Headlines Impacting Yum! Brands
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Yum! Brands’ investment narrative is increasingly centered on artificial intelligence, automation, digital loyalty and personalized app experiences. Management is using these tools across Taco Bell, KFC and Pizza Hut to improve delivery, inventory management and customer engagement, potentially supporting efficiency and sales growth. How Yum! Brands’ AI Automation And Loyalty Push Has Changed Its Investment Story
- Positive Sentiment: One valuation analysis argues that YUM could be approximately 19% below fair value, offering potential upside if investors view the company’s long-term brand strength, technology investments and international growth favorably. The appointment of director Kathleen Oberg to the Audit Committee was also highlighted as a governance development. Yum! Brands Could Be 19% Below Fair Value After Audit Committee Change
- Neutral Sentiment: Executive Sean Tresvant reported restricted stock unit vesting and the withholding of shares to cover taxes. The filing is generally routine and does not necessarily signal a change in management’s view of the company. Yum Brands Executive Sean Tresvant Reports RSU Vesting and Tax-Related Share Withholding
- Neutral Sentiment: Analyst roundups from Zacks and other market commentators provide additional coverage of YUM but do not identify a decisive new earnings or operating catalyst. The Zacks Analyst Blog Highlights McDonald’s, Starbucks and Yum! Brands
- Negative Sentiment: Pomerantz LLP is investigating potential claims on behalf of Yum! Brands investors. Although no finding of wrongdoing was reported, the investigation creates legal and reputational uncertainty. Pomerantz Law Firm Investigates Claims on Behalf of Yum! Brands Investors
- Negative Sentiment: Argus issued a pessimistic forecast for YUM, tempering the more optimistic fair-value commentary and suggesting concern about the stock’s near-term risk-reward profile. Argus Issues Pessimistic Forecast for Yum! Brands Stock
About Yum! Brands
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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