Johnson Financial Group Inc. Grows Stake in Yum! Brands, Inc. (NYSE:YUM)

Johnson Financial Group Inc. increased its stake in shares of Yum! Brands, Inc. (NYSE:YUM) by 605.1% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,114 shares of the restaurant operator’s stock after buying an additional 956 shares during the quarter. Johnson Financial Group Inc.’s holdings in Yum! Brands were worth $146,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Naples Money Management LLC purchased a new stake in shares of Yum! Brands during the fourth quarter valued at $26,000. Bfsg LLC purchased a new stake in Yum! Brands in the fourth quarter valued at $26,000. Fortitude Family Office LLC purchased a new stake in Yum! Brands in the fourth quarter valued at $27,000. Bruce G. Allen Investments LLC purchased a new stake in Yum! Brands in the fourth quarter valued at $34,000. Finally, DB Wealth Management Group LLC purchased a new stake in Yum! Brands in the third quarter valued at $43,000. 82.37% of the stock is owned by hedge funds and other institutional investors.

Yum! Brands Stock Up 1.0 %

YUM opened at $137.65 on Monday. Yum! Brands, Inc. has a twelve month low of $115.53 and a twelve month high of $143.20. The company has a 50-day moving average price of $138.05 and a 200 day moving average price of $133.42. The company has a market cap of $38.77 billion, a PE ratio of 24.41, a price-to-earnings-growth ratio of 2.22 and a beta of 1.07.

Yum! Brands (NYSE:YUM) last announced its quarterly earnings data on Wednesday, May 1st. The restaurant operator reported $1.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.20 by ($0.05). Yum! Brands had a net margin of 22.92% and a negative return on equity of 18.64%. The business had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.71 billion. During the same period in the prior year, the company posted $1.06 EPS. The firm’s revenue was down 2.9% on a year-over-year basis. As a group, sell-side analysts expect that Yum! Brands, Inc. will post 5.64 earnings per share for the current year.

Yum! Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 7th. Investors of record on Tuesday, May 28th will be paid a dividend of $0.67 per share. The ex-dividend date of this dividend is Friday, May 24th. This represents a $2.68 annualized dividend and a yield of 1.95%. Yum! Brands’s dividend payout ratio is presently 47.52%.

Yum! Brands declared that its board has authorized a share buyback program on Wednesday, May 15th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the restaurant operator to buy up to 5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. BMO Capital Markets upped their price target on shares of Yum! Brands from $133.00 to $135.00 and gave the company a “market perform” rating in a report on Thursday, May 2nd. JPMorgan Chase & Co. lowered their price target on shares of Yum! Brands from $134.00 to $132.00 and set a “neutral” rating on the stock in a report on Friday, May 3rd. TD Cowen reiterated a “buy” rating and issued a $160.00 price objective on shares of Yum! Brands in a research report on Wednesday, May 1st. Guggenheim upped their price objective on shares of Yum! Brands from $145.00 to $155.00 and gave the stock a “buy” rating in a research report on Thursday, March 7th. Finally, Citigroup decreased their price objective on shares of Yum! Brands from $166.00 to $162.00 and set a “buy” rating for the company in a research report on Tuesday, April 23rd. Eleven equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, Yum! Brands currently has a consensus rating of “Hold” and an average price target of $143.53.

Insider Activity at Yum! Brands

In related news, insider Scott Catlett sold 5,994 shares of the company’s stock in a transaction dated Friday, May 17th. The shares were sold at an average price of $141.50, for a total transaction of $848,151.00. Following the completion of the sale, the insider now owns 34,889 shares of the company’s stock, valued at approximately $4,936,793.50. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, CEO David W. Gibbs sold 7,067 shares of the stock in a transaction that occurred on Friday, March 15th. The shares were sold at an average price of $136.34, for a total value of $963,514.78. Following the completion of the sale, the chief executive officer now owns 175,377 shares of the company’s stock, valued at approximately $23,910,900.18. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Scott Catlett sold 5,994 shares of the stock in a transaction that occurred on Friday, May 17th. The stock was sold at an average price of $141.50, for a total transaction of $848,151.00. Following the transaction, the insider now directly owns 34,889 shares of the company’s stock, valued at approximately $4,936,793.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 33,521 shares of company stock valued at $4,620,263. Corporate insiders own 0.31% of the company’s stock.

Yum! Brands Company Profile

Yum! Brands, Inc, together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products.