Yum Brands Inc. (NYSE:YUM) finished Wednesday with a subtraction of -$2.03 to close at $121.98, a downside of -1.64 percent. An average of 1,499,480 shares of common stock have been traded in the last five days. There was a fall of -$5.07 in the past week, and it reached a new high 36 times over the past 12 months. The last 20 days have seen an average of 1,436,520 shares traded, while the 50-day average volume stands at 1,430,244.
YUM stock has decreased by -5.67% in the last month. The company shares reached their 1-month lowest point of $121.14 on 09/27/23. 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 lost -4.76% or -$6.10 in price. In spite of this, the price is down -14.85% from the 52-week high.
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Insider Transactions
YUM stock investors should be aware that Yum Brands Inc. (YUM) stock had its last reported insider trading activity 13 days ago on Sep 15. In this transaction, the insider spent $499,199. Chief Executive Officer, Gibbs David W, disposed of 3,858 shares at a price of $134.81 on Aug 15. The insider now owns more than $520,097 worth of shares. Prior to that, Director GRADDICK WEIR MIRIAN M went on to Sale 1,332 shares at $134.46 each on Aug 09. An amount of $179,101 was transacted.
Valuation Metrics
Yum Brands Inc. (YUM) has a trailing price-to-earnings (P/E) ratio of 24.63. The stock’s beta is 1.01. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.89, and the price-to-cash flow ratio at 26.72.
The company has a payout ratio of 49.90%. The company’s most recent quarterly dividend payment was $0.6050 a share, without any change from last year. Its latest increase dividend $0.0350 reported on Wednesday February 8 2023.
Financial Health
The quick ratio of Yum Brands Inc. for the three months ended June 29 was 1.02, and the current ratio was 1.02, 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 31.48%. 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 24.40%.
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 27 September was 24.15%, suggesting the stock is oversold, with historical volatility in this time frame at 20.58%.
As of today, YUM’s price is $124.13 -3.99% or -$5.07 from its 5-day moving average. YUM is currently trading -5.37% lower than its 20-day SMA and -10.52% lower than its 100-day SMA. However, the stock’s current price level is -8.86% below the SMA50 and -6.06% below the SMA200.
The stochastic %K and %D were 8.12% and 8.43%, respectively, and the average true range (ATR) was 2.02. With the 14-day stochastic at 7.50% and the average true range at 1.96, the RSI (14) stands at 28.69%. The stock has reached -1.91 on the 9-day MACD Oscillator while the 14-day reading was at -2.93.
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.
