Yum! Brands (NYSE:YUM) CEO Sells $40,105.00 in Stock

Key Points

• CEO Christopher Lee Turner sold 250 shares of Yum! Brands on July 1 at an average price of $160.42, totaling about $40,105. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
• Yum! Brands beat earnings expectations in its latest quarterly report, posting $1.50 per share versus the $1.39 consensus estimate. Revenue also came in above forecasts at $2.06 billion, up 15.2% year over year.
• The company recently approved a $4.0 billion share buyback and continues to pay a quarterly dividend of $0.75 per share, implying a 1.9% yield. Analysts remain broadly positive, with a consensus rating of Moderate Buy and a price target of $176.12.

Yum! Brands, Inc. (NYSE:YUM - Get Free Report) CEO Christopher Lee Turner sold 250 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total value of $40,105.00. Following the completion of the sale, the chief executive officer directly owned 64,032 shares in the company, valued at approximately $10,272,013.44. This represents a 0.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Christopher Lee Turner also recently made the following trade(s):

• On Monday, June 1st, Christopher Lee Turner sold 270 shares of Yum! Brands stock. The stock was sold at an average price of $148.14, for a total value of $39,997.80.
• On Friday, May 1st, Christopher Lee Turner sold 250 shares of Yum! Brands stock. The shares were sold at an average price of $160.48, for a total value of $40,120.00.

Yum! Brands Stock Up 0.4%

NYSE YUM traded up $0.64 during trading on Wednesday, hitting $160.50. The company's stock had a trading volume of 837,712 shares, compared to its average volume of 1,949,809. Yum! Brands, Inc. has a 52 week low of $137.33 and a 52 week high of $169.39. The firm has a market cap of $44.24 billion, a P/E ratio of 25.92, a price-to-earnings-growth ratio of 2.02 and a beta of 0.57. The firm has a 50 day moving average price of $153.69 and a 200 day moving average price of $156.19.

Yum! Brands (NYSE:YUM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.50 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.11. Yum! Brands had a negative return on equity of 23.51% and a net margin of 20.48%.The company had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.04 billion. During the same period in the prior year, the business earned $1.30 earnings per share. Yum! Brands's revenue for the quarter was up 15.2% compared to the same quarter last year. On average, equities analysts expect that Yum! Brands, Inc. will post 6.75 earnings per share for the current year.

Yum! Brands Dividend Announcement

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

Yum! Brands declared that its Board of Directors has approved a share buyback plan on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to reacquire up to 9.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Institutional Trading of Yum! Brands

Large investors have recently bought and sold shares of the stock. Econ Financial Services Corp increased its position in shares of Yum! Brands by 0.4% during the 1st quarter. Econ Financial Services Corp now owns 15,536 shares of the restaurant operator's stock worth $2,416,000 after purchasing an additional 63 shares in the last quarter. Magnolia Capital Advisors LLC boosted its position in Yum! Brands by 2.0% in the fourth quarter. Magnolia Capital Advisors LLC now owns 3,292 shares of the restaurant operator's stock valued at $498,000 after buying an additional 63 shares in the last quarter. Augustine Asset Management Inc. grew its stake in Yum! Brands by 2.0% during the fourth quarter. Augustine Asset Management Inc. now owns 3,287 shares of the restaurant operator's stock worth $497,000 after buying an additional 64 shares during the last quarter. Essex Financial Services Inc. grew its stake in Yum! Brands by 1.0% during the fourth quarter. Essex Financial Services Inc. now owns 6,667 shares of the restaurant operator's stock worth $1,009,000 after buying an additional 66 shares during the last quarter. Finally, Hilltop Holdings Inc. increased its holdings in shares of Yum! Brands by 2.8% during the fourth quarter. Hilltop Holdings Inc. now owns 2,525 shares of the restaurant operator's stock worth $382,000 after buying an additional 68 shares in the last quarter. 82.37% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

YUM has been the topic of several research reports. Weiss Ratings lowered Yum! Brands from a "buy (b+)" rating to a "buy (b)" rating in a research note on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft set a $177.00 price objective on Yum! Brands in a report on Thursday, April 30th. Royal Bank Of Canada restated a "sector perform" rating and issued a $165.00 target price on shares of Yum! Brands in a research note on Monday, April 20th. Morgan Stanley raised Yum! Brands from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $180.00 to $185.00 in a research report on Wednesday, June 3rd. Finally, TD Cowen reiterated a "buy" rating and set a $180.00 price target on shares of Yum! Brands in a research note on Tuesday, June 16th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $176.12.

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.

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