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David W. Gibbs, the Chief Executive Officer of Yum Brands Inc. (NYSE:YUM), recently sold a significant portion of the company’s stock. According to a recent filing, Gibbs sold 7,063 shares of Yum Brands’ common stock on May 15, 2025, at a price of $145.57 per share, totaling approximately $1,028,160. The transaction occurred as YUM trades near $147, with the company currently valued at $41 billion. InvestingPro analysis indicates the stock is trading close to its Fair Value.
In addition to the stock sale, Gibbs executed other transactions on the same day. He acquired 10,972 shares through the exercise of stock appreciation rights at prices ranging from $49.66 to $56.67 per share, amounting to a total acquisition value of $567,189. Furthermore, he disposed of 3,909 shares at a price of $145.16 per share, totaling $567,430. The company maintains strong financial health with a GOOD rating from InvestingPro, which offers 6 additional key insights about YUM’s performance.
These transactions were conducted under a 10b5-1 trading plan, which allows company executives to sell a predetermined number of shares at a set time, mitigating concerns about insider trading. Following these transactions, Gibbs holds 157,893.15 shares directly, with additional shares held indirectly in trusts. The company has maintained dividend payments for 22 consecutive years, with analysts setting price targets ranging from $140 to $185.
In other recent news, Yum! Brands reported its first-quarter 2025 earnings, revealing a mixed financial performance. The company achieved an earnings per share (EPS) of $1.30, slightly surpassing the forecast of $1.28. However, its revenue fell short of expectations, coming in at $1.79 billion compared to the anticipated $1.85 billion. Taco Bell and KFC contributed significantly to Yum! Brands’ growth, with Taco Bell’s same-store sales increasing by 9% and KFC meeting projections with a 2% increase. Despite this, Pizza Hut experienced a 2% decrease in sales, missing the expected 3% growth.
JPMorgan analyst John Ivankoe recently raised the stock price target for Yum! Brands from $160 to $170, maintaining a Neutral rating. Ivankoe’s analysis highlighted that Taco Bell and KFC are expected to account for over 80% of the company’s operating income for fiscal year 2025. These segments are projected to drive significant growth, contributing approximately 85% of the net unit growth for 2025 and 80% for 2026. Yum! Brands remains optimistic about its growth prospects, aiming for an 8% increase in core operating profit for 2025, with plans for international expansion focusing on Taco Bell.
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