Yum! Brands, Inc. (NYSE:YUM) Sees Significant Decrease in Short Interest

Yum! Brands, Inc. (NYSE:YUM) was the recipient of a significant decline in short interest during the month of January. As of January 30th, there was short interest totaling 7,008,607 shares, a decline of 18.8% from the January 15th total of 8,632,677 shares. Approximately 2.5% of the shares of the company are sold short. Based on an average daily trading volume, of 2,272,905 shares, the days-to-cover ratio is presently 3.1 days. Based on an average daily trading volume, of 2,272,905 shares, the days-to-cover ratio is presently 3.1 days. Approximately 2.5% of the shares of the company are sold short.

Yum! Brands Trading Up 0.4%

NYSE YUM traded up $0.63 on Tuesday, hitting $161.20. 1,678,792 shares of the company’s stock were exchanged, compared to its average volume of 2,199,088. The stock has a 50-day moving average of $155.15 and a 200-day moving average of $149.86. The stock has a market cap of $44.76 billion, a price-to-earnings ratio of 29.04, a P/E/G ratio of 2.26 and a beta of 0.66. Yum! Brands has a 52 week low of $137.33 and a 52 week high of $165.32.

Yum! Brands (NYSE:YUM) last issued its quarterly earnings results on Wednesday, February 4th. The restaurant operator reported $1.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.76 by ($0.03). Yum! Brands had a net margin of 18.98% and a negative return on equity of 22.42%. The business had revenue of $2.51 billion during the quarter, compared to the consensus estimate of $2.45 billion. During the same quarter in the previous year, the business posted $1.61 EPS. The company’s revenue for the quarter was up 6.4% on a year-over-year basis. As a group, analysts predict that Yum! Brands will post 5.94 earnings per share for the current year.

Yum! Brands Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Friday, February 20th will be issued a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from Yum! Brands’s previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Friday, February 20th. Yum! Brands’s dividend payout ratio (DPR) is currently 51.17%.

Analyst Ratings Changes

YUM has been the subject of several analyst reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Yum! Brands in a research note on Monday, December 29th. Gordon Haskett upgraded shares of Yum! Brands from a “hold” rating to a “buy” rating in a research report on Thursday, January 8th. Guggenheim reiterated a “buy” rating and issued a $180.00 price target on shares of Yum! Brands in a research note on Thursday, February 12th. TD Cowen reissued a “buy” rating and set a $180.00 price target on shares of Yum! Brands in a research report on Thursday, February 5th. Finally, BMO Capital Markets reaffirmed a “market perform” rating and issued a $165.00 price objective on shares of Yum! Brands in a report on Thursday, February 5th. Thirteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $174.00.

Insider Activity at Yum! Brands

In other news, CEO Scott Mezvinsky sold 1,612 shares of the stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $164.63, for a total value of $265,383.56. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Aaron Powell sold 12,000 shares of Yum! Brands stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $161.44, for a total transaction of $1,937,280.00. Following the sale, the chief executive officer directly owned 14,650 shares of the company’s stock, valued at $2,365,096. The trade was a 45.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 13,888 shares of company stock worth $2,244,938 in the last 90 days. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Yum! Brands

A number of institutional investors have recently added to or reduced their stakes in YUM. Salomon & Ludwin LLC lifted its holdings in Yum! Brands by 679.2% during the 3rd quarter. Salomon & Ludwin LLC now owns 187 shares of the restaurant operator’s stock worth $28,000 after buying an additional 163 shares during the period. Wiser Advisor Group LLC bought a new position in shares of Yum! Brands during the third quarter worth about $28,000. Community Bank N.A. acquired a new position in shares of Yum! Brands in the third quarter worth approximately $29,000. Westside Investment Management Inc. boosted its holdings in Yum! Brands by 81.7% in the third quarter. Westside Investment Management Inc. now owns 198 shares of the restaurant operator’s stock valued at $30,000 after acquiring an additional 89 shares during the last quarter. Finally, Jessup Wealth Management Inc acquired a new stake in Yum! Brands during the 4th quarter valued at approximately $30,000. 82.37% of the stock is currently owned by institutional investors and hedge funds.

Yum! Brands Company Profile

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.