American Century Companies Inc. Acquires New Holdings in Yum! Brands, Inc. (YUM)
American Century Companies Inc. acquired a new position in Yum! Brands, Inc. (NYSE:YUM) during the fourth quarter, HoldingsChannel.com reports. The firm acquired 413,290 shares of the restaurant operator’s stock, valued at approximately $33,729,000.
Other institutional investors have also recently added to or reduced their stakes in the company. Valeo Financial Advisors LLC purchased a new position in shares of Yum! Brands in the 3rd quarter worth about $117,000. Cerebellum GP LLC purchased a new position in shares of Yum! Brands in the 4th quarter worth about $140,000. Americafirst Capital Management LLC raised its holdings in shares of Yum! Brands by 107.6% in the 3rd quarter. Americafirst Capital Management LLC now owns 2,392 shares of the restaurant operator’s stock worth $176,000 after purchasing an additional 1,240 shares during the period. Steward Partners Investment Advisory LLC purchased a new position in shares of Yum! Brands in the 3rd quarter worth about $190,000. Finally, Smithfield Trust Co. raised its holdings in shares of Yum! Brands by 400.0% in the 3rd quarter. Smithfield Trust Co. now owns 2,725 shares of the restaurant operator’s stock worth $201,000 after purchasing an additional 2,180 shares during the period. Institutional investors own 73.23% of the company’s stock.
A number of equities analysts have recently commented on YUM shares. Nomura raised their price objective on Yum! Brands from $85.00 to $89.00 and gave the stock a “buy” rating in a report on Friday, November 3rd. Zacks Investment Research upgraded Yum! Brands from a “sell” rating to a “hold” rating in a report on Tuesday, October 24th. UBS Group reiterated a “positive” rating and set a $89.00 target price (up from $83.00) on shares of Yum! Brands in a report on Friday, November 3rd. Barclays raised their target price on Yum! Brands from $74.00 to $78.00 and gave the company an “equal weight” rating in a report on Wednesday, October 18th. Finally, Robert W. Baird raised their target price on Yum! Brands from $78.00 to $83.00 and gave the company a “neutral” rating in a report on Friday, November 3rd. Fourteen investment analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. Yum! Brands presently has an average rating of “Buy” and a consensus price target of $82.26.
Yum! Brands (NYSE:YUM) last posted its quarterly earnings data on Thursday, February 8th. The restaurant operator reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.80 by $0.16. Yum! Brands had a negative return on equity of 17.27% and a net margin of 22.80%. The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the previous year, the business earned $0.79 EPS. Yum! Brands’s revenue for the quarter was down 16.4% compared to the same quarter last year. equities analysts anticipate that Yum! Brands, Inc. will post 3.29 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 9th. Shareholders of record on Wednesday, February 14th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, February 13th. This is an increase from Yum! Brands’s previous quarterly dividend of $0.30. This represents a $1.44 annualized dividend and a yield of 1.85%. Yum! Brands’s payout ratio is currently 31.66%.
Yum! Brands declared that its Board of Directors has approved a stock repurchase program on Friday, November 17th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the restaurant operator to buy shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its shares are undervalued.
In other news, CEO Brian R. Niccol sold 927 shares of Yum! Brands stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $83.46, for a total value of $77,367.42. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Brian R. Niccol sold 2,294 shares of Yum! Brands stock in a transaction that occurred on Monday, January 22nd. The stock was sold at an average price of $84.90, for a total value of $194,760.60. Following the completion of the transaction, the chief executive officer now owns 10,160 shares of the company’s stock, valued at approximately $862,584. The disclosure for this sale can be found here. Insiders have sold a total of 5,270 shares of company stock worth $438,570 over the last 90 days. 0.65% of the stock is owned by company insiders.
Yum! Brands Company Profile
YUM! Brands, Inc is engaged in restaurant business. As of December 31, 2016, the Company operated or franchised over 43,500 restaurants in more than 135 countries and territories operating under the KFC, Pizza Hut or Taco Bell (collectively the Concepts) brands. The Company operates through three segments: The KFC Division, which includes the operations of the KFC concept around the world; The Pizza Hut Division, which includes the operations of the Pizza Hut concept around the world, and The Taco Bell Division, which includes the operations of the Taco Bell concept around the world.
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