Yum! Brands (NYSE:YUM) Sees Strong Trading Volume

Yum! Brands, Inc. (NYSE:YUM) saw strong trading volume on Friday . 123,111 shares traded hands during mid-day trading, a decline of 92% from the previous session’s volume of 1,636,779 shares.The stock last traded at $119.95 and had previously closed at $118.71.

Several equities analysts have recently issued reports on the company. Robert W. Baird lifted their price target on Yum! Brands from $127.00 to $130.00 and gave the stock an “outperform” rating in a research report on Thursday, April 29th. Oppenheimer upped their target price on shares of Yum! Brands from $120.00 to $135.00 and gave the stock an “outperform” rating in a research note on Thursday, April 29th. Wells Fargo & Company upped their price objective on Yum! Brands from $125.00 to $134.00 and gave the company an “overweight” rating in a research report on Tuesday, April 13th. Argus raised Yum! Brands from a “hold” rating to a “buy” rating and set a $135.00 target price for the company in a report on Wednesday, April 14th. Finally, Credit Suisse Group boosted their price target on Yum! Brands from $108.00 to $120.00 and gave the stock a “neutral” rating in a research note on Thursday, April 29th. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and eight have given a buy rating to the company. Yum! Brands currently has a consensus rating of “Hold” and a consensus target price of $118.65.

The company has a market cap of $35.67 billion, a PE ratio of 31.74, a PEG ratio of 2.44 and a beta of 1.09. The firm has a 50 day simple moving average of $118.19.

Yum! Brands (NYSE:YUM) last posted its quarterly earnings data on Tuesday, April 27th. The restaurant operator reported $1.07 EPS for the quarter, topping the consensus estimate of $0.87 by $0.20. The firm had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.45 billion. Yum! Brands had a negative return on equity of 15.62% and a net margin of 19.52%. The business’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the company earned $0.64 earnings per share. Equities research analysts anticipate that Yum! Brands, Inc. will post 4.12 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, June 11th. Shareholders of record on Friday, May 28th will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.67%. The ex-dividend date of this dividend is Thursday, May 27th. Yum! Brands’s dividend payout ratio is currently 55.25%.

Yum! Brands declared that its board has authorized a share buyback program on Monday, May 10th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the restaurant operator to repurchase up to 5.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

In other news, CEO David W. Gibbs sold 1,282 shares of the company’s stock in a transaction dated Monday, March 29th. The stock was sold at an average price of $108.00, for a total value of $138,456.00. Following the completion of the transaction, the chief executive officer now owns 22,256 shares of the company’s stock, valued at $2,403,648. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO Tracy L. Skeans sold 10,838 shares of the stock in a transaction dated Monday, May 24th. The stock was sold at an average price of $120.16, for a total value of $1,302,294.08. Following the sale, the chief operating officer now owns 16,242 shares of the company’s stock, valued at approximately $1,951,638.72. The disclosure for this sale can be found here. Over the last three months, insiders sold 61,325 shares of company stock valued at $7,267,062. Corporate insiders own 0.37% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in YUM. Price T Rowe Associates Inc. MD lifted its holdings in shares of Yum! Brands by 11.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 34,084,064 shares of the restaurant operator’s stock worth $3,687,214,000 after buying an additional 3,464,493 shares in the last quarter. Magellan Asset Management Ltd increased its holdings in Yum! Brands by 22.8% in the 1st quarter. Magellan Asset Management Ltd now owns 20,824,164 shares of the restaurant operator’s stock valued at $2,252,758,000 after acquiring an additional 3,867,237 shares during the last quarter. Sustainable Growth Advisers LP lifted its stake in Yum! Brands by 15.1% in the 1st quarter. Sustainable Growth Advisers LP now owns 7,392,908 shares of the restaurant operator’s stock worth $799,765,000 after purchasing an additional 969,215 shares in the last quarter. Geode Capital Management LLC increased its stake in Yum! Brands by 1.9% during the first quarter. Geode Capital Management LLC now owns 4,707,258 shares of the restaurant operator’s stock worth $507,942,000 after acquiring an additional 86,937 shares during the last quarter. Finally, Northern Trust Corp raised its position in Yum! Brands by 5.9% during the first quarter. Northern Trust Corp now owns 3,699,822 shares of the restaurant operator’s stock valued at $400,247,000 after purchasing an additional 205,090 shares during the period. Hedge funds and other institutional investors own 77.27% of the company’s stock.

About Yum! Brands (NYSE:YUM)

YUM! Brands, Inc, together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Pizza Hut Division, the Taco Bell Division, and the Habit Burger Grill Division. The company operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products.

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