JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Yum! Brands (NYSE:YUM) Stock

Yum! Brands (NYSE:YUM) had its target price upped by investment analysts at JPMorgan Chase & Co. from $160.00 to $170.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has an “overweight” rating on the restaurant operator’s stock. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 2.75% from the stock’s current price.

YUM has been the topic of a number of other research reports. The Goldman Sachs Group restated a “buy” rating and set a $177.00 target price on shares of Yum! Brands in a research note on Wednesday, November 5th. Evercore reissued an “outperform” rating and set a $190.00 price target on shares of Yum! Brands in a report on Friday, February 13th. Citigroup upped their price objective on Yum! Brands from $170.00 to $171.00 and gave the stock a “neutral” rating in a research note on Thursday, February 5th. Guggenheim reissued a “buy” rating and set a $180.00 target price on shares of Yum! Brands in a research note on Thursday, February 12th. Finally, BMO Capital Markets reissued a “market perform” rating and set a $165.00 price objective on shares of Yum! Brands in a research note on Thursday, February 5th. Thirteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $174.50.

Yum! Brands Price Performance

Shares of YUM traded down $1.01 during midday trading on Tuesday, hitting $165.45. 691,001 shares of the company traded hands, compared to its average volume of 2,058,616. Yum! Brands has a one year low of $137.33 and a one year high of $169.39. The firm has a market cap of $45.94 billion, a P/E ratio of 29.80, a PEG ratio of 2.30 and a beta of 0.66. The stock has a 50-day moving average of $156.34 and a 200-day moving average of $150.46.

Yum! Brands (NYSE:YUM) last announced its quarterly earnings data on Wednesday, February 4th. The restaurant operator reported $1.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.76 by ($0.03). The business had revenue of $2.52 billion during the quarter, compared to analysts’ expectations of $2.45 billion. Yum! Brands had a net margin of 18.98% and a negative return on equity of 22.42%. Yum! Brands’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same period last year, the company posted $1.61 EPS. Sell-side analysts forecast that Yum! Brands will post 5.94 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Scott Mezvinsky sold 1,612 shares of the firm’s stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $164.63, for a total transaction of $265,383.56. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Aaron Powell sold 12,000 shares of the company’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $161.44, for a total transaction of $1,937,280.00. Following the completion of the transaction, the chief executive officer directly owned 14,650 shares in the company, valued at $2,365,096. The trade was a 45.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 13,888 shares of company stock valued at $2,244,938. Company insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in YUM. MV Capital Management Inc. acquired a new position in shares of Yum! Brands in the 4th quarter valued at $28,000. Wiser Advisor Group LLC purchased a new position in shares of Yum! Brands in the 3rd quarter worth about $28,000. Salomon & Ludwin LLC grew its holdings in shares of 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 purchasing an additional 163 shares during the period. Community Bank N.A. acquired a new stake in Yum! Brands during the 3rd quarter worth approximately $29,000. Finally, Westside Investment Management Inc. raised 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 buying an additional 89 shares during the period. 82.37% of the stock is owned by hedge funds and other institutional investors.

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.