Yum! Brands (NYSE:YUM) Upgraded to "Hold" at Royal Bank Of Canada

Key Points

• Yum! Brands has been upgraded to a "hold" rating by Royal Bank of Canada, reflecting an assessment shift in its stock outlook after several analyst evaluations.
• The company reported $1.44 EPS for the last quarter, falling short of the consensus estimate of $1.46, even as its revenue increased by 9.6% year-over-year.
• Insider sales have occurred recently, with COO Tracy L. Skeans selling 12,220 shares and CEO David W. Gibbs selling 7,176 shares, raising concerns about insider sentiment amidst stock activity.

Yum! Brands (NYSE:YUM - Get Free Report) was upgraded by stock analysts at Royal Bank Of Canada to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

YUM has been the subject of several other reports. Sanford C. Bernstein set a $164.00 price target on shares of Yum! Brands in a research report on Tuesday, August 5th. Guggenheim restated a "buy" rating and set a $167.00 price target (up from $165.00) on shares of Yum! Brands in a research report on Monday, August 4th. Weiss Ratings restated a "buy (b)" rating on shares of Yum! Brands in a research report on Wednesday. Barclays restated an "overweight" rating and set a $164.00 price target (down from $167.00) on shares of Yum! Brands in a research report on Tuesday, August 5th. Finally, Piper Sandler upped their price target on shares of Yum! Brands from $155.00 to $157.00 and gave the company a "neutral" rating in a research report on Thursday, October 2nd. Eleven analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. Based on data from MarketBeat, Yum! Brands presently has a consensus rating of "Hold" and an average price target of $161.48.

Yum! Brands Stock Down 2.2%

Shares of NYSE:YUM opened at $142.84 on Wednesday. The stock has a market cap of $39.64 billion, a PE ratio of 28.17, a PEG ratio of 2.28 and a beta of 0.72. The company's fifty day moving average is $147.12 and its 200 day moving average is $146.98. Yum! Brands has a 52 week low of $122.13 and a 52 week high of $163.30.

Yum! Brands (NYSE:YUM - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.46 by ($0.02). Yum! Brands had a net margin of 18.11% and a negative return on equity of 21.01%. The business had revenue of $1.93 billion for the quarter, compared to analysts' expectations of $1.94 billion. During the same quarter in the previous year, the company earned $1.35 earnings per share. The business's quarterly revenue was up 9.6% on a year-over-year basis. Sell-side analysts anticipate that Yum! Brands will post 5.94 EPS for the current year.

Insider Activity at Yum! Brands

In related news, COO Tracy L. Skeans sold 12,220 shares of the business's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $148.24, for a total transaction of $1,811,492.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO David W. Gibbs sold 7,176 shares of the business's stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $149.80, for a total transaction of $1,074,964.80. Following the transaction, the chief executive officer owned 102,893 shares in the company, valued at $15,413,371.40. This represents a 6.52% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 36,195 shares of company stock worth $5,348,137 over the last ninety days. Corporate insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Yum! Brands

Hedge funds have recently bought and sold shares of the business. Wealth Enhancement Advisory Services LLC boosted its stake in Yum! Brands by 151.4% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 156,690 shares of the restaurant operator's stock worth $24,657,000 after acquiring an additional 94,355 shares in the last quarter. CWA Asset Management Group LLC bought a new stake in Yum! Brands during the first quarter worth about $270,000. Sowell Financial Services LLC bought a new position in shares of Yum! Brands in the first quarter worth approximately $939,000. Principal Financial Group Inc. lifted its stake in shares of Yum! Brands by 1.9% in the first quarter. Principal Financial Group Inc. now owns 353,103 shares of the restaurant operator's stock worth $55,564,000 after buying an additional 6,673 shares in the last quarter. Finally, Envestnet Asset Management Inc. lifted its stake in shares of Yum! Brands by 1.2% in the first quarter. Envestnet Asset Management Inc. now owns 256,961 shares of the restaurant operator's stock worth $40,435,000 after buying an additional 3,172 shares in the last quarter. Institutional investors own 82.37% of the company's stock.

About Yum! Brands

Yum! Brands, Inc, together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products.

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