Allworth Financial LP Purchases Shares of 12,786 Yum! Brands, Inc. $YUM

Key Points

• Allworth Financial purchased 12,786 Yum! Brands shares worth approximately $2.04 million during the second quarter. Institutional investors and hedge funds collectively own 82.37% of the company.
• Yum! Brands exceeded quarterly earnings expectations, reporting $1.62 in EPS versus a $1.58 consensus estimate, while revenue rose 12.2% year over year to $2.17 billion. The company also authorized a $4 billion share-repurchase program covering up to 9.4% of outstanding shares.
• Yum! Brands shares opened at $153.31, near their 50-day average, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $174.65. Insiders sold 18,549 shares worth about $2.89 million in the latest quarter under pre-arranged trading plans.

Allworth Financial LP purchased a new position in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 12,786 shares of the restaurant operator's stock, valued at approximately $2,044,000.

Several other institutional investors and hedge funds have also modified their holdings of YUM. Steph & Co. increased its holdings in shares of Yum! Brands by 107.5% during the 1st quarter. Steph & Co. now owns 166 shares of the restaurant operator's stock valued at $26,000 after purchasing an additional 86 shares in the last quarter. Edmond DE Rothschild Holding S.A. purchased a new position in Yum! Brands in the second quarter valued at $27,000. Kelleher Financial Advisors purchased a new position in Yum! Brands in the second quarter valued at $29,000. MV Capital Management Inc. acquired a new position in shares of Yum! Brands in the fourth quarter worth about $28,000. Finally, Manning & Napier Advisors LLC purchased a new stake in shares of Yum! Brands during the 1st quarter worth about $28,000. Institutional investors and hedge funds own 82.37% of the company's stock.

Insider Activity

In related news, CEO Scott Mezvinsky sold 268 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 483 shares in the company, valued at approximately $73,971.45. This represents a 35.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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 of the company's stock, valued at approximately $1,831,674. This represents a 39.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 18,549 shares of company stock valued at $2,890,168 in the last quarter. Insiders own 0.14% of the company's stock.

Yum! Brands Stock Up 0.6%

Yum! Brands stock opened at $153.31 on Friday. The company has a fifty day simple moving average of $153.43 and a 200-day simple moving average of $155.98. The firm has a market capitalization of $41.84 billion, a price-to-earnings ratio of 19.28, a PEG ratio of 2.47 and a beta of 0.55. Yum! Brands, Inc. has a 52-week low of $137.33 and a 52-week high of $170.14.

Yum! Brands (NYSE:YUM - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.58 by $0.04. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The firm had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same period last year, the firm posted $1.44 earnings per share. The company's revenue for the quarter was up 12.2% on a year-over-year basis. On average, research analysts anticipate that Yum! Brands, Inc. will post 6.42 EPS for the current fiscal year.

Yum! Brands announced that its Board of Directors has authorized a share buyback plan on Tuesday, June 16th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the restaurant operator to purchase up to 9.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

More Yum! Brands News

Here are the key news stories impacting Yum! Brands this week:

• Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth
• Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board
• Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change
• Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO
• Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Wells Fargo & Company raised their target price on Yum! Brands from $160.00 to $165.00 and gave the company an "equal weight" rating in a research report on Thursday, April 30th. Evercore reaffirmed an "outperform" rating on shares of Yum! Brands in a report on Tuesday, June 16th. UBS Group reissued a "buy" rating on shares of Yum! Brands in a report on Thursday, June 18th. TD Cowen restated a "buy" rating and issued a $180.00 price objective on shares of Yum! Brands in a research report on Tuesday, June 16th. Finally, Royal Bank Of Canada upped their target price on Yum! Brands from $165.00 to $170.00 and gave the stock a "sector perform" rating in a research note on Friday, July 31st. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $174.65.

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.

Want to see what other hedge funds are holding YUM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Yum! Brands, Inc. (NYSE:YUM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source