Yum! Brands’ Board of Directors is Eating Up Stock

Yum! Brands board of directors: Strong insider activity has been going on at Yum! Brands, Inc. (NYSE:YUM). Yesterday, D Robert Walter, a Director on the Board, acquired 20,000 company shares at an average price of $66.0858 (the transaction was actually executed in multiple trades at prices ranging from $66.02 to $66.12). The transaction totaled more than $1,321,700, and leaves Mr. Walter’s holdings at 108,301 shares, valued at $7.2 million.

In addition, two other insiders, Guiton Bonnie Hill, Director, and David Jonathan Blum, Senior Vice President and Chief of Public Affairs, purchased stock from the company last Thursday. However, their situations differ slightly from Walter’s. Hill acquired 3,546 shares at $16.9275, making use of some stock options that she holds. Additionally, she sold 2,270 shares at an average price of $65.933, making a big profit. Blum did something similar: he sold 9,500 shares at more than $66 each (actually, he sold them in two rounds, at $66.43 and $66.49), and bought the same amount, paying $29.29 per share, using Stock Appreciation Rights that he owns.

The purchases follow the third quarter earnings call, which took place on Oct. 9^th. Even though results came in below analyst projections and the company is still struggling in China mainly due to bad publicity, an avian flu scare and the sluggish Chinese economy, these insiders seem to still deposit their trust on the firm.

Another fact that may have motivated the purchases is Yum’s recent announcement of a quarterly dividend, which is scheduled for Friday, November 1^st. Investors of record on Friday, October 11^th, will receive a dividend of $0.37 per share, more than 2% of the current stock price.

Disclosure: Javier Hasse holds no position in any stocks mentioned

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