TD Cowen Reaffirms “Buy” Rating for Yum! Brands (NYSE:YUM)

TD Cowen reiterated their buy rating on shares of Yum! Brands (NYSE:YUMFree Report) in a research report report published on Tuesday, Benzinga reports. The firm currently has a $156.00 target price on the restaurant operator’s stock.

YUM has been the subject of several other reports. Royal Bank of Canada decreased their target price on shares of Yum! Brands from $145.00 to $141.00 and set a sector perform rating for the company in a report on Friday, February 9th. Citigroup dropped their price objective on shares of Yum! Brands from $166.00 to $162.00 and set a buy rating on the stock in a report on Tuesday, April 23rd. Barclays upped their price objective on Yum! Brands from $144.00 to $148.00 and gave the company an overweight rating in a research note on Thursday, May 2nd. JPMorgan Chase & Co. dropped their price target on Yum! Brands from $134.00 to $132.00 and set a neutral rating for the company in a report on Friday, May 3rd. Finally, Argus reaffirmed a hold rating on shares of Yum! Brands in a research note on Wednesday, April 10th. Eleven equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of Hold and an average target price of $143.27.

View Our Latest Analysis on Yum! Brands

Yum! Brands Stock Up 0.1 %

YUM opened at $134.77 on Tuesday. The firm has a market capitalization of $37.96 billion, a P/E ratio of 23.90, a P/E/G ratio of 2.19 and a beta of 1.07. Yum! Brands has a 52-week low of $115.53 and a 52-week high of $143.20. The firm’s 50 day moving average is $137.97 and its 200-day moving average is $133.60.

Yum! Brands (NYSE:YUMGet Free Report) last released its quarterly earnings data on Wednesday, May 1st. The restaurant operator reported $1.15 earnings per share for the quarter, missing analysts’ consensus estimates of $1.20 by ($0.05). Yum! Brands had a negative return on equity of 18.64% and a net margin of 22.92%. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.71 billion. During the same period last year, the business earned $1.06 EPS. The firm’s revenue was down 2.9% on a year-over-year basis. Equities analysts expect that Yum! Brands will post 5.64 earnings per share for the current fiscal year.

Yum! Brands announced that its board has approved a stock repurchase program on Wednesday, May 15th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the restaurant operator to repurchase up to 5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Yum! Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 7th. Investors of record on Tuesday, May 28th will be given a dividend of $0.67 per share. The ex-dividend date is Friday, May 24th. This represents a $2.68 dividend on an annualized basis and a yield of 1.99%. Yum! Brands’s dividend payout ratio (DPR) is 47.52%.

Insider Buying and Selling

In related news, Director Paget Leonard Alves sold 6,309 shares of the company’s stock in a transaction on Thursday, May 2nd. The shares were sold at an average price of $136.19, for a total transaction of $859,222.71. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, insider Scott Catlett sold 5,994 shares of the firm’s stock in a transaction on Friday, May 17th. The stock was sold at an average price of $141.50, for a total transaction of $848,151.00. Following the transaction, the insider now owns 34,889 shares in the company, valued at $4,936,793.50. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Paget Leonard Alves sold 6,309 shares of the company’s stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $136.19, for a total value of $859,222.71. The disclosure for this sale can be found here. In the last three months, insiders have sold 33,521 shares of company stock valued at $4,620,263. 0.31% of the stock is owned by company insiders.

Institutional Investors Weigh In On Yum! Brands

Large investors have recently modified their holdings of the business. Manchester Capital Management LLC raised its position in Yum! Brands by 165.7% during the first quarter. Manchester Capital Management LLC now owns 186 shares of the restaurant operator’s stock valued at $26,000 after acquiring an additional 116 shares in the last quarter. Ruedi Wealth Management Inc. grew its position in Yum! Brands by 79.8% during the first quarter. Ruedi Wealth Management Inc. now owns 187 shares of the restaurant operator’s stock valued at $26,000 after buying an additional 83 shares during the period. Naples Money Management LLC purchased a new position in Yum! Brands in the fourth quarter valued at $26,000. Bfsg LLC acquired a new position in shares of Yum! Brands in the fourth quarter worth about $26,000. Finally, Redmont Wealth Advisors LLC purchased a new stake in shares of Yum! Brands during the 1st quarter worth about $28,000. Hedge funds and other institutional investors own 82.37% of the company’s stock.

Yum! Brands Company Profile

(Get Free Report)

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.

See Also

Analyst Recommendations for Yum! Brands (NYSE:YUM)

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