Yum Brands Inc. (NYSE: YUM) has seen a rise in its stock price by 1.33 in relation to its previous close of 135.22. However, the company has experienced a -2.62% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-03-26 that Yum! Brands (YUM) benefits from continued focus on off-premise channels, strategic investments in digital technology and robust same-store sales.
Is It Worth Investing in Yum Brands Inc. (NYSE: YUM) Right Now?
Yum Brands Inc. (NYSE: YUM) has a price-to-earnings ratio that is above its average at 24.50x. The stock has a 36-month beta value of 1.10. Opinions on the stock are mixed, with 7 analysts rating it as a “buy,” 5 as “overweight,” 13 as “hold,” and 0 as “sell.”
The public float for YUM is 280.89M, and at present, short sellers hold a 2.41% of that float. On April 10, 2024, the average trading volume of YUM was 1.96M shares.
YUM’s Market Performance
YUM’s stock has seen a -2.62% decrease for the week, with a -1.82% drop in the past month and a 6.51% gain in the past quarter. The volatility ratio for the week is 1.76%, and the volatility levels for the past 30 days are at 1.38% for Yum Brands Inc. The simple moving average for the past 20 days is -0.32% for YUM’s stock, with a 5.10% simple moving average for the past 200 days.
Analysts’ Opinion of YUM
Many brokerage firms have already submitted their reports for YUM stocks, with Wells Fargo repeating the rating for YUM by listing it as a “Equal Weight.” The predicted price for YUM in the upcoming period, according to Wells Fargo is $135 based on the research report published on January 11, 2024 of the current year 2024.
Oppenheimer, on the other hand, stated in their research note that they expect to see YUM reach a price target of $154. The rating they have provided for YUM stocks is “Outperform” according to the report published on January 05th, 2024.
Stifel gave a rating of “Hold” to YUM, setting the target price at $135 in the report published on January 04th of the current year.
YUM Trading at 1.20% from the 50-Day Moving Average
After a stumble in the market that brought YUM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.35% of loss for the given period.
Volatility was left at 1.38%, however, over the last 30 days, the volatility rate increased by 1.76%, as shares sank -2.18% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.14% upper at present.
During the last 5 trading sessions, YUM fell by -2.62%, which changed the moving average for the period of 200-days by +0.50% in comparison to the 20-day moving average, which settled at $137.31. In addition, Yum Brands Inc. saw 4.87% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at YUM starting from Gibbs David W, who sale 7,067 shares at the price of $136.34 back on Mar 15 ’24. After this action, Gibbs David W now owns 175,377 shares of Yum Brands Inc., valued at $963,515 using the latest closing price.
Skeans Tracy L, the COO and CPO of Yum Brands Inc., sale 35,363 shares at $139.11 during a trade that took place back on Mar 06 ’24, which means that Skeans Tracy L is holding 3,183 shares at $4,919,433 based on the most recent closing price.
Stock Fundamentals for YUM
Current profitability levels for the company are sitting at:
- 0.33 for the present operating margin
- 0.49 for the gross margin
The net margin for Yum Brands Inc. stands at 0.23. The total capital return value is set at 0.47.
Based on Yum Brands Inc. (YUM), the company’s capital structure generated 3.35 points at debt to capital in total, while cash flow to debt ratio is standing at 0.14. The debt to equity ratio resting at -1.42. The interest coverage ratio of the stock is 4.54.
Currently, EBITDA for the company is 2.46 billion with net debt to EBITDA at 4.37. When we switch over and look at the enterprise to sales, we see a ratio of 6.96. The receivables turnover for the company is 9.6for trailing twelve months and the total asset turnover is 1.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.26.
Conclusion
To sum up, Yum Brands Inc. (YUM) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
