Traders Buy Yum! Brands (YUM) on Weakness

Traders purchased shares of Yum! Brands, Inc. (NYSE:YUM) on weakness during trading on Thursday. $68.25 million flowed into the stock on the tick-up and $48.81 million flowed out of the stock on the tick-down, for a money net flow of $19.44 million into the stock. Of all equities tracked, Yum! Brands had the 27th highest net in-flow for the day. Yum! Brands traded down ($2.42) for the day and closed at $87.99

YUM has been the subject of a number of research reports. KeyCorp began coverage on Yum! Brands in a research report on Wednesday, October 3rd. They set a “sector weight” rating for the company. UBS Group set a $99.00 price objective on Yum! Brands and gave the company a “buy” rating in a report on Monday, September 10th. ValuEngine raised Yum! Brands from a “hold” rating to a “buy” rating in a report on Friday, September 7th. BMO Capital Markets reissued a “hold” rating and issued a $88.00 price objective on shares of Yum! Brands in a report on Friday, August 3rd. Finally, BTIG Research boosted their price objective on Yum! Brands from $92.00 to $102.00 and gave the company a “buy” rating in a report on Wednesday, October 10th. Fourteen equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $90.06.

Yum! Brands (NYSE:YUM) last released its quarterly earnings results on Wednesday, October 31st. The restaurant operator reported $1.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.83 by $0.21. The business had revenue of $1.39 billion during the quarter, compared to analyst estimates of $1.37 billion. The business’s revenue for the quarter was down 3.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.68 EPS.

Yum! Brands declared that its board has authorized a share repurchase program on Friday, August 10th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the restaurant operator to reacquire up to 7.6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

In related news, VP David Eric Russell sold 7,340 shares of the company’s stock in a transaction dated Tuesday, September 25th. The stock was sold at an average price of $90.00, for a total value of $660,600.00. Following the completion of the transaction, the vice president now owns 25,960 shares of the company’s stock, valued at approximately $2,336,400. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO David W. Gibbs sold 6,366 shares of the company’s stock in a transaction dated Monday, October 15th. The stock was sold at an average price of $87.87, for a total value of $559,380.42. Following the completion of the transaction, the chief financial officer now directly owns 47,764 shares of the company’s stock, valued at approximately $4,197,022.68. The disclosure for this sale can be found here. Insiders sold a total of 20,075 shares of company stock valued at $1,779,370 in the last ninety days. 0.63% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Stock Yards Bank & Trust Co. increased its stake in Yum! Brands by 3.1% during the 3rd quarter. Stock Yards Bank & Trust Co. now owns 20,082 shares of the restaurant operator’s stock worth $1,826,000 after buying an additional 603 shares in the last quarter. WINTON GROUP Ltd increased its stake in Yum! Brands by 88.1% during the 2nd quarter. WINTON GROUP Ltd now owns 196,475 shares of the restaurant operator’s stock worth $15,368,000 after buying an additional 92,002 shares in the last quarter. Schwab Charles Investment Management Inc. increased its stake in Yum! Brands by 1.1% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 1,227,054 shares of the restaurant operator’s stock worth $95,981,000 after buying an additional 13,855 shares in the last quarter. Point72 Hong Kong Ltd purchased a new stake in Yum! Brands during the 2nd quarter worth approximately $477,000. Finally, NorthCoast Asset Management LLC increased its stake in Yum! Brands by 189.2% during the 2nd quarter. NorthCoast Asset Management LLC now owns 22,873 shares of the restaurant operator’s stock worth $1,789,000 after buying an additional 14,963 shares in the last quarter. 71.08% of the stock is owned by institutional investors.

Yum! Brands Company Profile (NYSE:YUM)

YUM! Brands, Inc, together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates in three segments: the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company operates restaurants under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories.

See Also: Ex-Dividend

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