Yum! Brands (NYSE:YUM) Stock Crosses Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Yum! Brands shares crossed above their 200-day moving average, reaching $154.75 before last trading at approximately $154.57. The stock’s 200-day average is $153.49.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $171.65, despite several recent target-price reductions and one downgrade to “Hold.”
• Yum! Brands reported quarterly EPS of $1.62, exceeding estimates, while revenue rose 12.2% year over year to $2.17 billion. The company also maintains a $0.75 quarterly dividend, equivalent to a 1.9% yield.

Yum! Brands, Inc. (NYSE:YUM - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $153.49 and traded as high as $154.75. Yum! Brands shares last traded at $154.5670, with a volume of 1,606,703 shares.

Wall Street Analysts Forecast Growth

YUM has been the topic of a number of recent analyst reports. Argus downgraded shares of Yum! Brands from a "buy" rating to a "hold" rating in a research report on Thursday, September 24th. Seaport Research Partners began coverage on shares of Yum! Brands in a report on Wednesday, September 16th. They issued a "buy" rating and a $162.00 price objective on the stock. Guggenheim decreased their price objective on shares of Yum! Brands from $180.00 to $155.00 and set a "buy" rating for the company in a research report on Tuesday, October 6th. Robert W. Baird lowered their target price on shares of Yum! Brands from $165.00 to $158.00 and set an "outperform" rating for the company in a research note on Friday, October 2nd. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $167.00 target price (down from $174.00) on shares of Yum! Brands in a report on Wednesday, October 21st. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat.com, Yum! Brands has a consensus rating of "Moderate Buy" and an average target price of $171.65.

Yum! Brands Price Performance

The company has a market capitalization of $42.18 billion, a PE ratio of 19.44, a price-to-earnings-growth ratio of 2.30 and a beta of 0.55. The company's 50 day simple moving average is $146.16 and its 200 day simple moving average is $153.49.

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 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 business had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter in the previous year, the firm earned $1.44 EPS. The company's revenue was up 12.2% compared to the same quarter last year. On average, equities analysts forecast that Yum! Brands, Inc. will post 6.64 EPS for the current year.

Yum! Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Wednesday, September 9th were given a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Wednesday, September 9th. Yum! Brands's dividend payout ratio (DPR) is 37.74%.

Insider Activity at Yum! Brands

In other Yum! Brands news, COO Tracy Skeans sold 3,494 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $158.00, for a total value of $552,052.00. Following the completion of the transaction, the chief operating officer owned 3 shares in the company, valued at $474. This represents a 99.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Russell sold 7,961 shares of the firm's stock in a transaction dated 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 directly owned 11,960 shares in the company, valued at approximately $1,831,674. The trade was a 39.96% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,778 shares of company stock valued at $1,966,393 over the last quarter. 0.14% of the stock is owned by insiders.

Institutional Trading of Yum! Brands

Several institutional investors and hedge funds have recently made changes to their positions in the company. Bleakley Financial Group LLC purchased a new position in Yum! Brands during the 1st quarter worth $1,589,000. Tidal Investments LLC raised its holdings in shares of Yum! Brands by 114.4% in the second quarter. Tidal Investments LLC now owns 53,189 shares of the restaurant operator's stock valued at $8,503,000 after buying an additional 28,380 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Yum! Brands in the second quarter valued at about $99,621,000. QRG Capital Management Inc. raised its holdings in shares of Yum! Brands by 19.8% in the first quarter. QRG Capital Management Inc. now owns 103,807 shares of the restaurant operator's stock valued at $16,140,000 after buying an additional 17,189 shares during the last quarter. Finally, SEB Asset Management AB acquired a new stake in shares of Yum! Brands during the first quarter worth about $15,285,000. 82.37% of the stock is owned by hedge funds and other institutional investors.

About Yum! Brands

Yum! Brands, Inc is a global restaurant company that operates, franchises and licenses quick-service and fast-casual restaurants. Its principal brands are KFC, which specializes in fried and other chicken products; Taco Bell, which offers Mexican-inspired food; Pizza Hut, which sells pizzas and related menu items; and The Habit Burger Grill, a fast-casual burger restaurant chain.

The company's business is primarily franchise-based, with restaurants operated by independent franchisees and licensees alongside company-operated locations.

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