Yum! Brands (NYSE:YUM) Upgraded by Seaport Research Partners to “Strong-Buy” Rating

Yum! Brands (NYSE:YUM) was upgraded by stock analysts at Seaport Research Partners to a “strong-buy” rating in a report released on Tuesday, Zacks reports.

Other equities analysts have also recently issued reports about the stock. UBS Group reissued a “buy” rating on shares of Yum! Brands in a research report on Thursday, June 18th. Robert W. Baird lowered their price objective on shares of Yum! Brands from $174.00 to $165.00 and set an “outperform” rating for the company in a research report on Wednesday. Argus dropped their price objective on Yum! Brands from $185.00 to $180.00 and set a “buy” rating on the stock in a research note on Monday, August 17th. Morgan Stanley upgraded Yum! Brands from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $180.00 to $185.00 in a report on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $174.00 target price on shares of Yum! Brands in a research note on Friday, July 31st. Fourteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $174.67.

Yum! Brands Price Performance

Shares of NYSE:YUM opened at $138.12 on Tuesday. The company has a market capitalization of $37.69 billion, a price-to-earnings ratio of 17.37, a P/E/G ratio of 2.23 and a beta of 0.55. The firm’s 50 day simple moving average is $150.42 and its 200 day simple moving average is $154.38. Yum! Brands has a fifty-two week low of $137.33 and a fifty-two week high of $170.14.

Yum! Brands (NYSE:YUM) last released 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 for the quarter, compared to analyst estimates of $2.18 billion. During the same quarter last year, the firm earned $1.44 EPS. Yum! Brands’s quarterly revenue was up 12.2% compared to the same quarter last year. Equities research analysts expect that Yum! Brands will post 6.51 earnings per share for the current year.

Yum! Brands declared that its board has initiated a share buyback program on Tuesday, June 16th that permits the company to buyback $4.00 billion in shares. This buyback authorization permits the restaurant operator to reacquire up to 9.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Yum! Brands

In other Yum! Brands news, VP David Russell sold 7,961 shares of Yum! Brands 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 sale, the vice president owned 11,960 shares of the company’s stock, valued at $1,831,674. This trade represents a 39.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Mezvinsky sold 268 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $153.64, for a total value of $41,175.52. Following the completion of the sale, the chief executive officer owned 482 shares in the company, valued at approximately $74,054.48. This trade represents a 35.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 18,780 shares of company stock worth $2,940,693. 0.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Yum! Brands

A number of large investors have recently bought and sold shares of YUM. Bullseye Investment Management LLC bought a new position in shares of Yum! Brands during the 2nd quarter worth approximately $248,000. Tidal Investments LLC lifted its position 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 worth $8,503,000 after purchasing an additional 28,380 shares in the last quarter. Van Hulzen Asset Management LLC lifted its position in shares of Yum! Brands by 2.2% in the second quarter. Van Hulzen Asset Management LLC now owns 8,008 shares of the restaurant operator’s stock worth $1,280,000 after purchasing an additional 171 shares in the last quarter. National Pension Service boosted its holdings in Yum! Brands by 4.0% during the second quarter. National Pension Service now owns 470,206 shares of the restaurant operator’s stock worth $75,167,000 after purchasing an additional 18,060 shares during the last quarter. Finally, Cidel Asset Management Inc. boosted its holdings in Yum! Brands by 5.5% during the second quarter. Cidel Asset Management Inc. now owns 1,484 shares of the restaurant operator’s stock worth $237,000 after purchasing an additional 77 shares during the last quarter. Institutional investors and hedge funds own 82.37% of the company’s stock.

Key Stories Impacting Yum! Brands

Here are the key news stories impacting Yum! Brands this week:

• Positive Sentiment: Seaport Global initiated coverage with a Buy rating, adding a new bullish view that could support investor confidence in Yum!’s long-term growth prospects. Seaport Global initiates coverage of Yum! Brands at Buy
• Positive Sentiment: Yum!’s post–Pizza Hut strategy could create new growth opportunities. The company is concentrating on Taco Bell, KFC and Habit Burger & Grill, while management has indicated it may pursue another acquisition or add a new brand. That could broaden the portfolio, although execution and deal costs remain important considerations. Yum! Brands may pursue a new brand after selling Pizza Hut
• Neutral Sentiment: Analyst opinion remains generally constructive. Robert W. Baird maintained an “outperform” rating and its revised $165 price target implies substantial upside from the recent share price, while the broader analyst consensus is “Moderate Buy.” However, Baird’s target reduction from $174 signals more cautious expectations. Analyst coverage and Yum! Brands outlook
• Negative Sentiment: Zacks named Yum! Brands its Bear of the Day, citing a multiyear deterioration in the company’s earnings outlook and continuing challenges across the fast-food industry. Zacks Bear of the Day: Yum! Brands
• Negative Sentiment: Recent trading performance has lagged peers. Yum! Brands underperformed competitors and recorded another decline heading into the latest session, reinforcing concerns about weak momentum and investor skepticism. Yum! Brands stock underperforms competitors

About Yum! Brands

Yum! Brands, Inc is a global restaurant company that develops, operates and franchises quick-service restaurants. Its portfolio includes KFC, Taco Bell, Pizza Hut and The Habit Burger Grill, which offer products such as fried and grilled chicken, tacos and other Mexican-inspired foods, pizza, burgers and related menu items.

The company’s restaurants serve customers through a combination of company-operated locations and franchised and licensed outlets. Yum! Brands supports its restaurant concepts with brand management, franchise services, technology and digital ordering capabilities, while franchisees generally manage day-to-day restaurant operations.

Yum! Brands serves customers in numerous markets worldwide, with a significant presence in the United States and international markets across regions including Asia, Europe, Latin America, the Middle East and Africa.