abrdn plc Reduces Its Stake in Yum! Brands, Inc. (NYSE:YUM)

abrdn plc has reduced its investment in Yum! Brands, Inc. (NYSE:YUM – Free Report) by 13.8% during the fourth quarter, as revealed in its latest filing with the Securities and Exchange Commission. Following this sale of 18,831 shares, abrdn plc now holds a total of 117,714 shares of the popular restaurant operator. The value of abrdn plc's investment in Yum! Brands was approximately $15,706,000 at the end of the last quarter.

In addition to abrdn plc, various other institutional investors and hedge funds have also adjusted their stakes in Yum! Brands. Geode Capital Management LLC raised its position in the company by 1.5% during the third quarter, acquiring 111,147 additional shares to own 7,441,170 shares valued at about $1,038,775,000. Charles Schwab Investment Management Inc. also increased its shareholdings by 0.4%, now owning 1,632,862 shares worth $228,127,000 after purchasing an extra 6,537 shares. Similarly, Cantillon Capital Management LLC lifted its stake by 3.8%, accumulating 51,690 more shares to reach 1,428,040 shares valued at $199,511,000.

The Swiss National Bank enhanced its share ownership by 0.3% in the third quarter, now holding 835,800 shares worth approximately $116,770,000 after acquiring an additional 2,800 shares. Furthermore, Sumitomo Mitsui Trust Group Inc. increased its stake by 3.1%, owning now 689,631 shares worth $96,348,000 following an additional purchase of 20,966 shares during the last quarter. Overall, institutional investors own about 82.37% of Yum! Brands stock.

Insider Transactions at Yum! Brands

In related news, Yum! Brands CEO David W. Gibbs sold 3,815 shares on December 16th for an average price of $137.06, totaling around $522,883.90. Following this sale, Gibbs retains ownership of 149,385 shares valued at approximately $20,474,708. This transaction represents a decrease of 2.49% in his ownership stake. The details of this sale were disclosed through a filing with the Securities & Exchange Commission. Company insiders currently hold 0.31% of Yum! Brands stock.

Changes in Analyst Ratings

Several brokerages have recently provided updated ratings on Yum! Brands. Morgan Stanley maintained an “equal weight” rating with a revised price target of $140.00, down from $158.00. Citigroup also reaffirmed a “neutral” rating but reduced its price target to $141.00 from $153.00. Loop Capital adjusted its price objective from $143.00 to $140.00 while keeping a “hold” rating on the stock. On the other hand, Oppenheimer increased its price target for Yum! Brands from $154.00 to $160.00 with an “outperform” rating assigned. TD Cowen reiterated a “hold” rating with a price target of $140.00. At present, thirteen equities research analysts have given the stock a hold rating, while five have recommended a buy, resulting in a consensus rating of “Hold” and an average price target of $144.61.

Yum! Brands Stock Performance

As of Friday, Yum! Brands stock opened at $143.93, showing a strong performance with a 50-day simple moving average of $132.19 and a 200-day average of $133.65. The stock has ranged between a 52-week low of $122.13 and a high of $144.43, boasting a market capitalization of $40.17 billion. The company's price-to-earnings (P/E) ratio stands at 26.90, with a P/E growth (P/E/G) ratio of 2.14 and a beta of 1.11.

Yum! Brands reported recent earnings on November 5th, announcing earnings of $1.37 per share, which fell short of analysts’ expectations of $1.41 by $0.04. The company's revenue for that quarter reached $1.83 billion, lower than anticipated revenues of $1.90 billion, with a net margin of 21.13% and a negative return on equity of 18.93%. In comparison to the previous year, quarterly revenue was up 6.9%. Analysts predict that Yum! Brands, Inc. will post earnings of $5.46 per share for the current fiscal year.

Yum! Brands Announces Dividend Increase

Recently, Yum! Brands declared a quarterly dividend that will be distributed on March 7th. Shareholders who are registered as of February 21st will receive a dividend of $0.71 per share, an increase from the prior quarterly dividend of $0.67. This elevates the annualized dividend to $2.84, yielding 1.97%. The company's current dividend payout ratio stands at 50.09%.

Overview of Yum! Brands

Yum! Brands, Inc. operates and franchises quick-service restaurants on a global scale. The company manages multiple brands under different divisions comprising KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. These establishments are geared towards serving a variety of popular food categories, including chicken, pizza, burgers, sandwiches, and Mexican cuisine.

investment, stocks, YUM