Yum Brands Inc. (NYSE:YUM) CEO David W. Gibbs has sold a significant portion of his company stock, according to a recent SEC filing. The transactions, which occurred on April 15, included Gibbs selling 7,078 shares of Yum Brands common stock at prices ranging from $138.37, totaling over $979,000.
Alongside the sale, the filing also disclosed that Gibbs acquired 6,197 shares through an option exercise at a price of $52.64 per share, amounting to a total of $326,210. Additionally, the CEO disposed of 2,368 shares at a price of $137.80, with a total value of approximately $326,310.
The transactions were conducted under a pre-arranged 10b5-1 trading plan, which was adopted on December 1, 2023. This plan allows company insiders to set up a predetermined schedule to buy or sell company stocks at a time when they are not in possession of material non-public information.
Following these transactions, Gibbs still holds a substantial number of Yum Brands shares directly and indirectly through trusts. Specifically, the CEO has direct ownership of 172,128.15 shares and indirect ownership of 39,499 and 26,394 shares in two separate trusts.
Yum Brands Inc., headquartered in Louisville, Kentucky, operates globally with a portfolio of fast-food brands including KFC, Pizza Hut, and Taco Bell. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol YUM.
InvestingPro Insights
As Yum Brands Inc. (NYSE:YUM) navigates the market, its financial stability and stock performance are of keen interest to investors. With CEO David W. Gibbs’ recent stock transactions making headlines, it's important to consider the company's broader financial context provided by InvestingPro data.
Yum Brands boasts a solid market capitalization of $38.69 billion, underscoring its significant presence in the fast-food industry. The company's Price-to-Earnings (P/E) ratio stands at an adjusted 23.45 based on the last twelve months as of Q4 2023. This figure offers investors a lens through which to evaluate the company’s earnings relative to its share price. Furthermore, Yum Brands has shown a consistent revenue growth, with a 3.42% increase over the last twelve months as of Q4 2023, demonstrating its ability to expand its financial base amidst competitive market conditions.
InvestingPro Tips reveal additional layers of Yum Brands’ investment potential. The company has a commendable track record of raising its dividend for 6 consecutive years and has maintained dividend payments for 21 consecutive years, reflecting a commitment to shareholder returns. Additionally, Yum Brands stock generally trades with low price volatility, which might appeal to investors seeking stability in their portfolios.
Investors interested in a deeper dive into Yum Brands’ financials and stock performance can explore additional InvestingPro Tips, including the company's valuation multiples and profitability forecasts. For instance, analysts predict the company will be profitable this year, and it has indeed been profitable over the last twelve months. With more InvestingPro Tips available, investors can make more informed decisions by utilizing the comprehensive analysis provided on the InvestingPro platform. To gain full access to these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Yum Brands continues to execute its strategic initiatives, understanding the company's financial health and stock trends can greatly benefit current and prospective shareholders. With the next earnings date slated for May 1, 2024, all eyes will be on the company's performance and future outlook.
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