Yum! Brands Inc. (NYSE: YUM) stock fell -2.33% on Friday to $112.57 against a previous-day closing price of $115.25. With 1.84 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.56 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $117.29 whereas the lowest price it dropped to was $112.52. The 52-week range on YUM shows that it touched its highest point at $139.85 and its lowest point at $108.37 during that stretch. It currently has a 1-year price target of $134.72. With its current market cap of 31.88 billion, YUM has annualized dividend of $2.28 while the current yield stands at 2.03%. Beta for the stock currently stands at 1.03.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of YUM was down-trending over the past week, with a drop of -1.96%, but this was down by -1.89% over a month. Three-month performance surged to 1.00% while six-month performance fell -5.14%. The stock lost -9.84% in the past year, while it has lost -18.93% so far this year. A look at the trailing 12-month EPS for YUM yields 4.99 with Next year EPS estimates of 5.28. For the next quarter, that number is 1.16. This implies an EPS growth rate of 77.10% for this year and 15.48% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.40%.
Float and Shares Shorts:
At present, 286.00 million YUM shares are outstanding with a float of 284.25 million shares on hand for trading. On Aug 30, 2022, short shares totaled 1.98 million, which was 0.69% higher than short shares on Jul 28, 2022. In addition to Mr. David W. Gibbs as the firm’s CEO & Director, Mr. Christopher Lee Turner serves as its Chief Financial Officer.
Through their ownership of 78.96% of YUM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.12% of YUM, in contrast to 46.50% held by mutual funds. Shares owned by individuals account for 32.99%. As the largest shareholder in YUM with 10.56% of the stake, T. Rowe Price Associates, Inc. holds 30,044,947 shares worth 30,044,947. A second-largest stockholder of YUM, The Vanguard Group, Inc., holds 21,489,498 shares, controlling over 7.55% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in YUM, holding 13,349,289 shares or 4.69% stake. With a 4.55% stake in YUM, the T Rowe Price Capital Appreciation is the largest stakeholder. A total of 12,951,128 shares are owned by the mutual fund manager. The Washington Mutual Investors Fund, which owns about 3.08% of YUM stock, is the second-largest Mutual Fund holder. It holds 8,750,534 shares valued at 973.41 million. Vanguard Total Stock Market Index holds 2.97% of the stake in YUM, owning 8,435,286 shares worth 938.34 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, YUM reported revenue of $1.64B and operating income of $542.00M. Over the past year, revenue came in at $6.68B while operating income stood at $2.09B. It generated $224.00M net income for the quarter, which came to $1.48B over the last twelve months. The EBITDA in the recently reported quarter was $570.00M and diluted EPS was $0.77. EBITDA for the full year was $2.21B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for YUM since 30 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 18 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With YUM analysts setting a high price target of $149.00 and a low target of $120.00, the average target price over the next 12 months is $134.93. Based on these targets, YUM could surge 32.36% to reach the target high and rise by 6.6% to reach the target low. Reaching the average price target will result in a growth of 19.86% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. YUM will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $4.91 being high and $4.38 being low. For YUM, this leads to a yearly average estimate of $4.58. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Yum! Brands Inc. surprised analysts by -$0.04 when it reported $1.05 EPS against a consensus estimate of $1.09. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $1.23 and the low estimate is $1.03. The average estimate for the next quarter is thus $1.16.
Summary of Insider Activity:
Insiders traded YUM stock several times over the past three months with 5 Buys and 7 Sells. In these transactions, 29,741 shares were bought while 22,114 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 102,037 while 64,507 shares were sold.