Insider Selling: Yum! Brands, Inc. (YUM) CEO Sells 945 Shares of Stock

Yum! Brands, Inc. (NYSE:YUM) CEO Brian R. Niccol sold 945 shares of the business’s stock in a transaction that occurred on Friday, February 9th. The shares were sold at an average price of $79.90, for a total value of $75,505.50. Following the completion of the transaction, the chief executive officer now directly owns 10,785 shares of the company’s stock, valued at $861,721.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Shares of Yum! Brands, Inc. (NYSE:YUM) traded down $1.24 during mid-day trading on Monday, hitting $78.07. The stock had a trading volume of 3,018,167 shares, compared to its average volume of 2,000,000. The company has a current ratio of 1.66, a quick ratio of 1.65 and a debt-to-equity ratio of -1.49. The firm has a market cap of $26,310.00, a P/E ratio of 20.60, a price-to-earnings-growth ratio of 1.89 and a beta of 0.95. Yum! Brands, Inc. has a twelve month low of $62.85 and a twelve month high of $86.93.

Yum! Brands (NYSE:YUM) last announced its earnings results on Thursday, February 8th. The restaurant operator reported $0.96 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.80 by $0.16. Yum! Brands had a negative return on equity of 17.27% and a net margin of 22.80%. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the prior year, the company posted $0.79 EPS. The business’s quarterly revenue was down 16.4% on a year-over-year basis. research analysts forecast that Yum! Brands, Inc. will post 3.29 EPS for the current year.

Yum! Brands announced that its Board of Directors has approved a stock buyback program on Friday, November 17th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the restaurant operator to purchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

The company also recently declared a quarterly dividend, which will be paid on Friday, March 9th. Investors of record on Wednesday, February 14th will be given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 1.84%. This is a boost from Yum! Brands’s previous quarterly dividend of $0.30. The ex-dividend date is Tuesday, February 13th. Yum! Brands’s payout ratio is presently 31.66%.

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hall Capital Management Co. Inc. increased its position in shares of Yum! Brands by 5.1% during the fourth quarter. Hall Capital Management Co. Inc. now owns 12,820 shares of the restaurant operator’s stock worth $1,046,000 after purchasing an additional 625 shares in the last quarter. Daiwa Securities Group Inc. increased its position in shares of Yum! Brands by 2.6% during the fourth quarter. Daiwa Securities Group Inc. now owns 25,393 shares of the restaurant operator’s stock worth $2,072,000 after purchasing an additional 652 shares in the last quarter. Iowa State Bank increased its position in shares of Yum! Brands by 3.1% during the fourth quarter. Iowa State Bank now owns 22,353 shares of the restaurant operator’s stock worth $1,824,000 after purchasing an additional 663 shares in the last quarter. Advisory Services Network LLC increased its position in shares of Yum! Brands by 54.2% during the fourth quarter. Advisory Services Network LLC now owns 1,921 shares of the restaurant operator’s stock worth $157,000 after purchasing an additional 675 shares in the last quarter. Finally, Bessemer Group Inc. increased its position in shares of Yum! Brands by 13.6% during the fourth quarter. Bessemer Group Inc. now owns 5,668 shares of the restaurant operator’s stock worth $462,000 after purchasing an additional 679 shares in the last quarter. Hedge funds and other institutional investors own 73.23% of the company’s stock.

A number of research analysts have issued reports on YUM shares. Zacks Investment Research raised Yum! Brands from a “sell” rating to a “hold” rating in a report on Tuesday, October 24th. Edward Jones raised Yum! Brands from a “hold” rating to a “buy” rating in a report on Friday, January 26th. Morgan Stanley boosted their price target on Yum! Brands from $77.00 to $82.00 and gave the company an “equal weight” rating in a report on Friday, November 3rd. Nomura boosted their price target on Yum! Brands from $85.00 to $89.00 and gave the company a “buy” rating in a report on Friday, November 3rd. Finally, Barclays reissued an “equal weight” rating and issued a $84.00 price target (up from $79.00) on shares of Yum! Brands in a report on Tuesday, January 16th. Fourteen equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $82.26.

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About Yum! Brands

YUM! Brands, Inc is engaged in restaurant business. As of December 31, 2016, the Company operated or franchised over 43,500 restaurants in more than 135 countries and territories operating under the KFC, Pizza Hut or Taco Bell (collectively the Concepts) brands. The Company operates through three segments: The KFC Division, which includes the operations of the KFC concept around the world; The Pizza Hut Division, which includes the operations of the Pizza Hut concept around the world, and The Taco Bell Division, which includes the operations of the Taco Bell concept around the world.

Insider Buying and Selling by Quarter for Yum! Brands (NYSE:YUM)

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