TD Cowen has recently reduced Yum! Brands, Inc. (YUM) stock to Hold rating, as announced on October 16, 2024, according to Finviz. Earlier, on July 16, 2024, Evercore ISI had reduced the stock rating, setting a price target of $145 for YUM stock. Goldman also initiated Neutral rating with a price target of $150. Additionally, Argus reduced Hold rating on April 10, 2024. Wells Fargo analysts, in their report published on January 11, 2024, also reduced Equal Weight rating and set a price target of $150 for Yum! Brands, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Yum! Brands, Inc. (YUM) Stock Trading Recap
On Monday, Yum! Brands, Inc. (YUM) stock saw a decline, ending the day at $136.62 which represents a decrease of $-0.59 or -0.43% from the prior close of $137.21. The stock opened at $136.71 and touched a low of $136.54 during the day, reaching a high of $138.57. The volume of shares traded was 1.73 million falling short of the average volume of 1.84 million.
YUM Stock Performance and Moving Averages
In recent trading, Yum! Brands, Inc. (YUM) stock price has shown some volatility, fluctuating 2.91% over the last five trades and 1.94% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 0.18%, and it has plunged by -0.70% in the previous three months. Currently, YUM is trading at 1.93%, 1.69%, and 1.08% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, YUM, a Consumer Cyclical sector stock, is trading -4.59% below its 52-week high but remains 10.54% above its 52-week low. The Average True Range (ATR) (14 days) of 2.51 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Yum! Brands, Inc.’s Profitability and Valuation Ratios
Yum! Brands, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 32.48% and a profit margin of 21.13%, with a gross margin of 0.18%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Yum! Brands, Inc.’s market capitalization stands at $38.17 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 25.56, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 22.38. Additionally, the Price-to-Sales Ratio is 5.28, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.15% of Yum! Brands, Inc. (YUM)’s shares, while financial institutions hold 90.52%.
Notable insider trades include Gibbs David W, Chief Executive Officer at Yum! Brands, Inc. (YUM), who sold 7005 shares on Oct 15 ’24, at $134.43 each, totaling $0.94 million. On Sep 16 ’24, Gibbs David W, Chief Executive Officer, sold 7005 shares for $134.43 each, amounting to $0.94 million. Additionally, on Aug 19 ’24, GRADDICK WEIR MIRIAN M sold 1309 shares at $137.4 each, generating $0.18 million.
