On July 14, 2023, David Gibbs, CEO of Yum Brands Inc (YUM, Financial), sold 3877 shares of the company. This move is part of a broader trend of insider selling at Yum Brands Inc over the past year.
David Gibbs has been with Yum Brands Inc for over 30 years, serving in various leadership roles before becoming CEO in January 2020. Under his leadership, the company has continued to expand its global footprint and innovate its product offerings.
Yum Brands Inc is a global quick-service restaurant company, which operates and franchises a system of restaurant brands including KFC, Pizza Hut, and Taco Bell. The company operates nearly 50,000 restaurants in more than 150 countries and territories.
Over the past year, Gibbs has sold a total of 19646 shares and has not made any purchases. This recent sale represents a small fraction of his total transactions over the past year.
The insider transaction history for Yum Brands Inc shows a clear trend of insider selling. Over the past year, there have been 13 insider sells and no insider buys.
The stock was trading at $135.92 per share on the day of Gibbs's recent sale, giving the company a market cap of $38.019 billion. The price-earnings ratio is 31.94, which is higher than the industry median of 27.5 and higher than the company’s historical median price-earnings ratio.
Despite the insider selling, the stock appears to be fairly valued based on its GF Value. With a price of $135.92 and a GuruFocus Value of $139.22, Yum Brands Inc has a price-to-GF-Value ratio of 0.98.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
While the insider selling at Yum Brands Inc may raise some eyebrows, it's important to consider the broader context. The stock appears to be fairly valued, and the company continues to perform well under the leadership of Gibbs. As always, investors should do their own research and consider multiple factors before making investment decisions.
