Stock Analysis:Yum! Brands Inc (NYSE:YUM) Price Target Change
In a recent research report finalized by JP Morgan on Friday, 11 December, Yum! Brands Inc (NYSE:YUM) had its TP boosted to $81.00. The firm now has a solid Overweight rating on shares.
From a total of 19 analysts covering YUM! Brands (NYSE:YUM) stock, 9 rate it a ”Buy”, 1 a “Sell”, and 15 a ”Hold”. This means that 36% of the ratings are positive. The highest target price is $100 while the lowest target price is $68. The mean of all analyst targets is $81.74 with a 28.15% above today’s ($71.48) stock price. YUM! Brands was the topic of 17 analyst reports since July 1, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on December 2 with “Outperform” rating. Barclays Capital maintained shares with “Equal Weight” rating and $73 target share price in a report from an October 7. RBC Capital Markets maintained YUM stock in a recent report from October 21 with “Top Pick” rating. Stifel Nicolaus maintained the rating on October 7. Stifel Nicolaus has a “Buy” rating and a $100 price target on shares. Finally, JP Morgan maintained the stock with “Overweight” rating in a report issued on an October 7.
Approximately 1.27 million shares of stock traded hands. Yum! Brands, Inc. (NYSE:YUM) has declined 18.57% since May 8, 2015 and is downtrending. It has underperformed by 15.55% the S&P500.
Analysts await Yum! Brands, Inc. (NYSE:YUM) to reports earnings on February, 3. They expect $0.73 EPS, up 19.67% or $0.12 from last year’s $0.61 per share. YUM’s profit will be $321.96M for 24.48 P/E if the $0.73 EPS becomes reality. After $1.00 actual EPS reported by Yum! Brands, Inc. for the previous quarter, Wall Street now forecasts -27.00% negative EPS growth.
The overall sentiment of institutions has decreased to 0.85 in Q2 2015. Its down 0.02, from 0.87 in 2015Q2. The ratio is negative, as 84 institutions have sold all the shares of Yum! Brands, Inc. that they owned while 299 funds have taken shares off the table. 79 funds have purchased shares for the first time while 246 added to their positions. These institutions now hold 301.00 million shares or 6.04% less than the 320.36 million shares they owned in 2015Q2.
The Fund Corvex Management Lp currently is holding shares equating to 18.83% of its total portfolio in Yum! Brands, Inc. representing a total of 20.04 million shares. Another fund,Matthews International Capital Management Llc, is holding a total of 3.45 million shares equating to 12.25% of their holdings. Additionally, Adi Capital Management Llc has a 234,100 share stake in Yum! Brands, Inc. which represents 10.32% of their total portfolio. The Fund, Third Point Llc, based out of New York, has also built up a stake in the stock, which represents a total of 8.75% of their total portfolio. Finally Stewart West Indies Trading Co. Ltd, a fund which is based in the state of Colorado reported a total holdings of 915,000 shares.
Insider activity is a very important aspect to track on any stock. Going back to March 2, 2015, shareholders of Yum! Brands, Inc. have witnessed 1 insider buy, and a total of 4 insider sales equating to a net activity of approximately $53,024 . Blum Jonathan David sold 1,597 shares worth approximately $119,775. Novak David C bought 8,170 shares worth approximately $637,053. Pant Muktesh sold 37,280 shares worth approximately $2.98M.
YUM! Brands, Inc. is engaged in restaurant business. The company has a market cap of $31.53 billion. YUM develops, operates, franchises and licenses a system of both traditional and non-traditional Quick Service Restaurants (QSR), which prepare, package and sell a menu of food items. It has 34.15 P/E ratio. YUM operates in five divisions: YUM China, which includes all activities in mainland China; YUM India, which includes all activities in India, Bangladesh, Nepal and Sri Lanka; The KFC Division, which includes all activities of the KFC concept outside of China Division and India Division; The Pizza Hut Division, which includes all activities of the Pizza Hut concept outside of China Division and India Division; and the Taco Bell Division , which includes all activities of the Taco Bell concept outside of India Division.
According to Zacks Investment Research, “Yum! Brands, Inc. is the world’s largest restaurant company in terms of system units with nearly 38,000 restaurants in over 120 countries and territories. Their brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. The Yum! system includes four operating segments: U.S., International (Yum! Restaurants International), China and India Divisions.” Get a free copy of the Zacks research report on Yum! Brands, Inc. (YUM).