TD Cowen Maintains Hold Rating for Yum! Brands (NYSE:YUM)

TD Cowen has reaffirmed a "hold" rating for Yum! Brands (NYSE:YUM - Get Free Report) in a report released on Thursday. The investment firm has set a target price of $140.00 for the shares of the well-known restaurant operator. This target price implies a potential upside of approximately 6.58% based on the current trading price of the stock.

Market Reactions and Analyst Ratings

Yum! Brands has attracted attention from several other analysts recently. For example, Argus upgraded the stock from a "hold" to a "buy" rating with a price target of $155.00 in a research note published on December 31. Meanwhile, Morgan Stanley maintained an "equal weight" rating but adjusted its price target from $158.00 to $140.00 on January 21. On January 22, Sanford C. Bernstein downgraded the rating from "outperform" to "market perform" and lowered their price target from $140.00 to $135.00. Additionally, Redburn Atlantic shifted its stance from a "strong-buy" to a "hold" in November.

In contrast, Oppenheimer increased its price target for Yum! Brands from $154.00 to $160.00 while maintaining an "outperform" rating. Currently, a total of thirteen research analysts have a "hold" rating on the stock, while five have issued a "buy" rating. Data from MarketBeat indicates that the average rating remains a "hold," with a consensus price target of $144.61.

Yum! Brands Stock Overview

On Thursday, shares of Yum! Brands opened at $131.35. The company boasts a market capitalization of $36.66 billion and a price-to-earnings (P/E) ratio of 24.55. It has experienced a fifty-two week low of $122.13 and a high of $143.20. The stock has a fifty-day moving average of $132.35 and a two-hundred-day moving average of $133.67. Yum! Brands recently reported its quarterly earnings on February 6, announcing earnings per share of $1.61, slightly above the consensus estimate of $1.60. The company reported a net margin of 21.13% but had a negative return on equity of 18.93%. Analysts anticipate Yum! Brands will post earnings of $5.46 per share for the current year.

Insider Transactions and Ownership

In other news, Yum! Brands' CEO David W. Gibbs sold 7,059 shares of the company's stock on November 15. This transaction occurred at an average price of $135.94, amounting to about $959,600.46. After the sale, Gibbs retains ownership of 149,385 shares valued at approximately $20.3 million. This move represented a 4.51% decrease in his overall position. Currently, insiders own approximately 0.31% of the company's stock.

Institutional Investors' Involvement

Yum! Brands has also seen significant activity from institutional investors. For instance, Geode Capital Management LLC increased its stake in the company by 1.5% in the third quarter, now owning 7,441,170 shares worth around $1.04 billion. Additionally, Bank of New York Mellon Corp boosted its position by 4.2% in the fourth quarter and now holds over 2.35 million shares valued at approximately $316 million. Other notable investors include Cantillon Capital Management LLC, which grew its holdings by 31.7%, and Charles Schwab Investment Management Inc., which increased its stake by 0.4%. Overall, institutional and hedge fund ownership now stands at about 82.37%.

About Yum! Brands

Yum! Brands, Inc., and its subsidiaries, oversee the development, operation, and franchising of quick-service restaurants worldwide. The company operates through various segments, including KFC, Taco Bell, Pizza Hut, and Habit Burger Grill, providing a range of food options, such as chicken, pizza, and Mexican-style cuisines.

Conclusion

With TD Cowen reinstating its "hold" rating and setting a target price suggesting mild growth potential, it remains to be seen how Yum! Brands will navigate market trends and investor expectations in the coming months.

Yum, Brands, Stock