Cinctive Capital Management LP Sells 104,234 Shares of Yum! Brands, Inc. $YUM

Key Points

• Cinctive Capital Management LP cut its Yum! Brands stake by 73.6% in the fourth quarter, selling 104,234 shares and ending with 37,327 shares worth about $5.65 million.
• Yum! Brands reported strong quarterly results, posting $1.50 EPS versus $1.39 expected and revenue of $2.06 billion, while analysts currently rate the stock a Moderate Buy with an average price target of $176.12.
• The company announced a $4 billion share repurchase authorization, and it also paid a quarterly dividend of $0.75 per share, equal to a 1.9% annualized yield.

Cinctive Capital Management LP reduced its position in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) by 73.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 37,327 shares of the restaurant operator's stock after selling 104,234 shares during the period. Cinctive Capital Management LP's holdings in Yum! Brands were worth $5,647,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of YUM. Wiser Advisor Group LLC bought a new stake in shares of Yum! Brands during the 3rd quarter worth $28,000. Community Bank N.A. bought a new stake in shares of Yum! Brands during the 3rd quarter worth $29,000. Jessup Wealth Management Inc bought a new stake in shares of Yum! Brands during the 4th quarter worth $30,000. Kohmann Bosshard Financial Services LLC bought a new stake in shares of Yum! Brands during the 4th quarter worth $36,000. Finally, Torren Management LLC bought a new stake in shares of Yum! Brands during the 4th quarter worth $38,000. 82.37% of the stock is owned by institutional investors.

Insider Buying and Selling at Yum! Brands

In other news, CEO Christopher Lee Turner sold 270 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $148.14, for a total value of $39,997.80. Following the completion of the transaction, the chief executive officer owned 64,282 shares in the company, valued at approximately $9,522,735.48. This represents a 0.42% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sean Tresvant sold 3,000 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $154.68, for a total transaction of $464,040.00. Following the completion of the transaction, the chief executive officer owned 3,140 shares of the company's stock, valued at approximately $485,695.20. This represents a 48.86% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 5,895 shares of company stock worth $906,499. Corporate insiders own 0.14% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. BMO Capital Markets reaffirmed a "market perform" rating and set a $168.00 price objective on shares of Yum! Brands in a report on Monday, May 4th. TD Cowen reissued a "buy" rating and issued a $180.00 price target on shares of Yum! Brands in a report on Tuesday. Deutsche Bank Aktiengesellschaft set a $177.00 price target on shares of Yum! Brands in a report on Thursday, April 30th. Evercore reissued an "outperform" rating on shares of Yum! Brands in a report on Tuesday. Finally, JPMorgan Chase & Co. increased their price target on shares of Yum! Brands from $160.00 to $170.00 and gave the company an "overweight" rating in a report on Tuesday, February 24th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $176.12.

Yum! Brands Price Performance

Shares of Yum! Brands stock opened at $154.03 on Thursday. Yum! Brands, Inc. has a fifty-two week low of $137.33 and a fifty-two week high of $169.39. The firm has a fifty day moving average price of $154.93 and a two-hundred day moving average price of $155.74. The company has a market cap of $42.45 billion, a PE ratio of 24.84, a price-to-earnings-growth ratio of 2.01 and a beta of 0.57.

Yum! Brands (NYSE:YUM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 earnings per share for the quarter, beating analysts' consensus estimates of $1.39 by $0.11. Yum! Brands had a net margin of 20.48% and a negative return on equity of 23.51%. The firm had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same period in the prior year, the firm earned $1.30 EPS. The business's revenue was up 15.2% on a year-over-year basis. Analysts expect that Yum! Brands, Inc. will post 6.78 earnings per share for the current fiscal year.

Yum! Brands declared that its Board of Directors has initiated a share repurchase plan on Tuesday, June 16th that allows the company to repurchase $4.00 billion in shares. This repurchase authorization allows the restaurant operator to reacquire up to 9.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Yum! Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th were paid a $0.75 dividend. The ex-dividend date was Wednesday, May 27th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.9%. Yum! Brands's dividend payout ratio is currently 48.39%.

Key Stories Impacting Yum! Brands

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

• Positive Sentiment: The Pizza Hut divestiture should streamline Yum! Brands and allow management to concentrate on KFC and Taco Bell, which are seen as the company’s main growth drivers. Yum! Brands set to sell Pizza Hut business
• Positive Sentiment: The company also approved a $4 billion share repurchase authorization, which could support earnings per share and signals confidence in the stock’s value. Yum! Brands To Sell Pizza Hut In $2.7 Bln Deal, Plans $4 Bln Buyback; Shares Up
• Neutral Sentiment: Analysts are split on the move: some say it removes a long-running overhang, while others argue valuation still limits near-term upside. Hold Rating Maintained on Yum! Brands as Pizza Hut Divestiture Clears Overhang but Valuation Caps Near-Term Upside
• Negative Sentiment: The sale also underscores Pizza Hut’s weak performance, with slower demand and tougher competition making the brand a drag on the broader portfolio. Yum Brands to sell Pizza Hut for $2.7 billion

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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