Yum! Brands Insider Takes Some Profits (YUM)

Pant Muktesh, the CEO of KFC, a business unit of YUM! Brands (YUM) has filed a form 4,  for the exercise of 12,866 shares of his Employee Stock Options.  Mr Muktesh exercised his right to by 12,866 shares at $26.53 and then sold all the shares at $82.  This was a nice profit of over $713,000.

After the sale, Mr. Muktesh still holds 12,816 shares directly, and another 1993 shares indirectly( by 401(k) account.

Interestingly, Mr. Muktesh also exercised 12815 share options on June 9.

The date of the transaction to sell his YUM! Brand (YUM) shares, per the Form 4 filed with the SEC was June 25, 2014.

Yum! Brands (YUM) is trading at $81.48 today, down 24 cents on light volume this morning.  Mr Muktesh seems to have sold his sizeable holdings at the right time as YUM is trading at it’s 52 week high.  It’s traded as low as $64.08 this year.  While by no means an indication that Mr. Muktesh thinks YUM’s share price is going lower, his sale will make investors rethink their holdings in Yum! Brands at this time.

Last week, YUM stock was reiterated by CitiGroup Inc. (C) at NEUTRAL, with a price target of $85.  It could be Mr. Muktesh saw that that there wasn’t much room for growth in the share price and his money was better off invested elsewhere.

Yum! Brands reports its Q2 earnings on July 16, 2014, with a consensus earnings estimate of 72 cents.  24 analysts have ratings on YUM, with an average of OVERWEIGHT, and a price target of $85.76.

YUM Brands operates over 39,000 fast food restaurants around the world, including KFC, Pizza Hut and Taco Bell.  

Here’s the 3 months chart on YUM! Brands (YUM)