Yum China (NYSE:YUMC) Insider Sells $1,312,463.36 in Stock

Yum China (NYSE:YUMC) insider Xueling Lu sold 23,504 shares of the firm’s stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total value of $1,312,463.36. Following the transaction, the insider owned 9,042 shares of the company’s stock, valued at approximately $504,905.28. This represents a 72.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Yum China Price Performance

YUMC stock opened at $55.98 on Wednesday. The business’s fifty day moving average price is $50.57 and its 200 day moving average price is $46.95. Yum China has a 12-month low of $41.00 and a 12-month high of $58.39. The company has a current ratio of 1.32, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $20.23 billion, a PE ratio of 22.30, a P/E/G ratio of 1.56 and a beta of 0.14.

Yum China (NYSE:YUMC) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.72 billion. Yum China had a net margin of 7.87% and a return on equity of 14.46%. During the same period in the prior year, the firm earned $0.30 earnings per share. The business’s revenue for the quarter was up 8.8% compared to the same quarter last year. On average, sell-side analysts anticipate that Yum China will post 2.54 EPS for the current year.

Yum China announced that its board has authorized a share repurchase program on Friday, December 12th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

Yum China Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 2.1%. This is a positive change from Yum China’s previous quarterly dividend of $0.24. The ex-dividend date is Wednesday, March 4th. Yum China’s payout ratio is presently 38.25%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of YUMC. Broad Peak Investment Advisers Pte Ltd purchased a new position in shares of Yum China during the third quarter worth about $27,679,000. Massachusetts Financial Services Co. MA lifted its position in Yum China by 14.3% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 4,734,295 shares of the company’s stock worth $203,196,000 after acquiring an additional 591,251 shares during the period. Pictet North America Advisors SA grew its stake in shares of Yum China by 4.9% in the 3rd quarter. Pictet North America Advisors SA now owns 497,944 shares of the company’s stock valued at $21,299,000 after purchasing an additional 23,096 shares during the last quarter. Principal Financial Group Inc. grew its stake in shares of Yum China by 14.8% in the 3rd quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock valued at $883,687,000 after purchasing an additional 2,604,480 shares during the last quarter. Finally, Magellan Asset Management Ltd acquired a new position in shares of Yum China in the second quarter valued at approximately $18,482,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. CLSA reissued an “outperform” rating and set a $55.00 target price on shares of Yum China in a research note on Tuesday, November 25th. Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Wall Street Zen upgraded shares of Yum China from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Jefferies Financial Group reiterated a “buy” rating and issued a $63.64 price target on shares of Yum China in a research note on Thursday, February 5th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $58.50 price objective on shares of Yum China in a research report on Wednesday, February 4th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Yum China presently has an average rating of “Moderate Buy” and a consensus target price of $59.05.

Yum China Company Profile

Yum China Holdings, Inc operates as the largest quick-service restaurant company in China, through its ownership and franchising of brands such as KFC, Pizza Hut and Taco Bell. The company’s core business encompasses full-service and fast‐casual dining, takeout and delivery channels, as well as ancillary services including loyalty programs and digital ordering platforms. Yum China’s restaurants offer a diverse menu that adapts global brand concepts to local consumer preferences, featuring items such as soy‐marinated chicken, customized pizzas and region‐inspired side dishes.

In addition to its signature brands, Yum China has expanded its portfolio to include innovative concepts tailored to evolving market trends, such as plant‐based offerings, self‐service kiosks and mobile app integrations.