The stock of Yum! Brands Inc. (NYSE:YUM) decreased by -$0.6 on Wednesday to $132.12, down -0.46 percent. The last five days have seen an average of 1,061,381 shares of common stock traded. 19 times new highs were reached in the current year, with a gain of $3.98. The average number of shares traded over the last 20 days was 1,354,070, while the average volume over the last 50 days totaled 1,576,088.
YUM stock dropped -1.29% since last month. On 08/16/23, the company’s shares reached a one-month low of $131.50. The stock touched a high of $143.24 on 05/02/23, after rallying from a low of $103.96 in 52 weeks. The price of YUM stock has risen by 3.15% or $3.98 this year, reaching a new high 19 times. Still, the stock price is down -7.77% from the 52-week high.
Insider Transactions
YUM stock investors should be aware that Yum! Brands Inc. (YUM) stock had its last reported insider trading activity 1 day ago on Aug 15. On Aug 15, Chief Executive Officer Gibbs David W sold 3,858 shares at $134.81 each. This transaction resulted in the insider making $520,097. On Aug 09, GRADDICK WEIR MIRIAN M sold 1,332 shares at a price of US$134.46. After the transaction, the insider now owns 1,233 shares. Chief Executive Officer Gibbs David W had earlier sold 3,877 shares on Jul 14 for $135.92 a share. The transaction was completed for $526,962.
Valuation Metrics
Yum! Brands Inc. (YUM) has a trailing price-to-earnings (P/E) ratio of 26.68. Beta for the stock is 1.00. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.30, and the price-to-cash flow ratio of 28.98.
Company paid $0.6050 per share in dividends, remained unchanged from $0.6050 last year. A $0.0350 dividend increase was reported on Wednesday February 8 2023.
Financial Health
For the three months ended June 29, Yum! Brands Inc.’s quick ratio was 1.00, while its current ratio was 1.00, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 48.90% percent. Yum! Brands Inc.’s EBITDA margin for the year ended June 29 was 34.42%, whereas its operating margin stood at 31.80% for the same period. Based on annual data, it had gross profit of $5.1 billion and revenue of $6.84 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. YUM’s return on assets (ROA) during the last 12 months has been 24.50%. There was a 62.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -16.40%.
Earnings Surprise
According to Yum! Brands Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.69 billion, while revenues rose by 3.02% to $1.65 billion. It was predicted that Yum! Brands Inc.’s quarterly earnings would be $1.41, but it ended up being $1.24, beating the consensus by 13.70%. EBITDA was $611.0 million for the quarter. At the end of Yum! Brands Inc.’s most recent quarter ended June 29, its liabilities totaled 14.28 billion, while its total debt was $12.31 billion. Equity owned by shareholders amounts to $280.21 million.
Technical Picture
Here’s a quick look at Yum! Brands Inc.’s (YUM) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 33.54%, suggesting the stock is Neutral, with a 12.04% historical volatility rate.
The stochastic %K and %D were 14.84% and 21.49% respectively, while the average true range (ATR) was 1.99. Based on the 14-day stochastic reading of 7.31%, the RSI (14) reading is 38.64%. On the 9-day MACD Oscillator, the stock is at -0.70, and the 14-day reading is at -1.57.
Analyst Ratings
In its analyst report released on June 14, 2023, Piper Sandler began covering Yum! Brands Inc. (NYSE: YUM). The stock was rated as a Neutral by the brokerage firm. Analysts have assigned Yum! Brands Inc. (YUM) an Overweight rating. YUM is a stock that is recommended for selling by 0 brokerage firms, while 17 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 9 others recommend it as a buy.
What is YUM’s price target for the next 12 months?
The current consensus forecast for the stock is between $132.00 and $173.00, with a median target price of $147.90. In analyzing these forecasts, the average price target given by analysts for Yum! Brands Inc. (YUM) is $149.19.
