Yum Brands Inc. (YUM) Shares Slip, Investors Watching Closely, Here is Why

Yum Brands Inc. (NYSE: YUM) shares rose on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Shares of Yum Brands Inc. (NYSE: YUM) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Strong Sell on the shares, the company has a 52-week high of $91.99. A number of other analysts have commented on the company in recent days, and Yum Brands Inc. has earned a consensus one-year price target of $67.06, higher than the opening price of $64.82, a difference of 10.33 percent. Important and integral changes in the company’s procedures, future vision or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the original recommendation.

Shares of Yum Brands Inc. (NYSE: YUM) opened at $64.82 on Tuesday and has traded in a range between, $64.66 and $65.00, and last traded at $64.94, which represents a spike of $0.20 or 0.31% compared to the previous closing price.

Yum Brands Inc. (NYSE: YUM) currently has a market cap of 23.83B.

Yum Brands Inc. (NYSE: YUM) Average Daily Trading Volume

The stock’s average daily volume is 4,807,150 shares out of a total float 344,662,000 and some 178,019 shares traded hands yesterday, lower than normal. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to pinpoint heavy volume accumulation or dissemination by institutional investors.

However, one day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Yum Brands Inc. (NYSE: YUM) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Yum Brands Inc. (NYSE: YUM) have ranged from $59.57 – 91.99, and the stock now has a 50-day MA of $62.16 and 200-day MA of $62.62. Today’s last price is 29.41%% under the 52 week high of $91.99.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more over 3 consecutive years.

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