Yum! Brands Inc. (NYSE:YUM) finished Wednesday with a subtraction of -$0.05 to close at $129.40, a downside of -0.04 percent. An average of 1,415,560 shares of common stock have been traded in the last five days. There was a fall of -$2.16 in the past week, and it reached a new high 34 times over the past 12 months. The last 20 days have seen an average of 1,470,090 shares traded, while the 50-day average volume stands at 1,592,650.
YUM stock has decreased by -5.54% in the last month. The company shares reached their 1-month lowest point of $128.30 on 08/22/23. With the stock rallying to its 52-week high on 05/02/23, shares of the company touched a low of $103.96 and a high of $143.24 in 52 weeks. It has reached a new high 19 times so far this year and achieved 1.03% or $1.32 in price. In spite of this, the price is down -9.67% 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 9 days ago on Aug 15. In this transaction, the insider spent $520,097. Director, GRADDICK WEIR MIRIAN M, disposed of 1,332 shares at a price of $134.46 on Aug 09. The insider now owns more than $179,101 worth of shares. Prior to that, Chief Executive Officer Gibbs David W went on to Sale 3,877 shares at $135.92 each on Jul 14. An amount of $526,962 was transacted.
Valuation Metrics
Yum! Brands Inc. (YUM) has a trailing price-to-earnings (P/E) ratio of 26.13. The stock’s beta is 1.01. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.22, and the price-to-cash flow ratio at 28.53.
Financial Health
The quick ratio of Yum! Brands Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.00, indicating that the company is able to meet its debt obligations. Yum! Brands Inc.’s EBITDA margin for the year ending June 29 is 34.42%, while its operating margin for the same period stands at 31.80%. Its gross profit as reported stood at $5.1 billion compared to revenue of $6.84 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Yum! Brands Inc.’s return on assets was 24.50%.
Earnings Surprise
For the three-month period that ended June 29, Yum! Brands Inc. had $11.19 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $418.0 million in the quarter, while revenues were grew 46.41%. The analyst consensus anticipated Yum! Brands Inc.’s latest quarter earnings to come in at $1.24 per share, but it turned out to be $1.41, a 13.70% surprise. For the quarter, EBITDA amounted to $611.0 million. Shareholders own equity worth $280.21 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Yum! Brands Inc. (YUM) price momentum. RSI 9-day as of the close on 23 August was 28.96%, suggesting the stock is oversold, with historical volatility in this time frame at 11.93%.
As of today, YUM’s price is $129.34 -1.64% or -$2.16 from its 5-day moving average. YUM is currently trading -5.75% lower than its 20-day SMA and +0.05% higher than its 100-day SMA. However, the stock’s current price level is -3.88% below the SMA50 and +8.28% above the SMA200.
The stochastic %K and %D were 10.54% and 7.54%, respectively, and the average true range (ATR) was 1.74. With the 14-day stochastic at 13.55% and the average true range at 1.85, the RSI (14) stands at 33.77%. The stock has reached -1.89 on the 9-day MACD Oscillator while the 14-day reading was at -3.01.
Analyst Ratings
Piper Sandler launched coverage on Yum! Brands Inc. (NYSE: YUM) in its analyst report released on June 14, 2023. The firm assigned the stock a Neutral rating. The consensus rating for Yum! Brands Inc. (YUM) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell YUM, while 17 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 9 others rate it as a “buy”.
What is YUM’s price target for the next 12 months?
Analysts predict a range of price targets between $132.00 and $173.00, with a median target of $147.90. Taking a look at these predictions, the average price target given by analysts for Yum! Brands Inc. (YUM) stock is $149.19.
