Yum China (NYSE:YUMC) Sets New 52-Week Low – What’s Next?

Yum China (NYSE:YUMC) reached a new 52-week low during mid-day trading on Friday. The stock traded as low as $40.00 and last traded at $40.13, with a volume of 154940 shares. The stock had previously closed at $40.96.

Analysts Set New Price Targets

A number of research firms have commented on YUMC. Wall Street Zen raised Yum China from a “hold” rating to a “buy” rating in a research report on Monday, August 17th. The Goldman Sachs Group reissued a “buy” rating and set a $59.00 target price on shares of Yum China in a research note on Thursday, July 30th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a report on Friday, August 21st. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Yum China currently has an average rating of “Moderate Buy” and an average price target of $59.21.

Yum China Price Performance

The company has a market cap of $13.72 billion, a PE ratio of 14.68, a PEG ratio of 1.08 and a beta of 0.07. The firm’s 50-day moving average is $44.80 and its 200-day moving average is $45.53. The company has a quick ratio of 0.78, a current ratio of 0.96 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.67 by $0.03. The business had revenue of $3.14 billion during the quarter, compared to analyst estimates of $3.05 billion. Yum China had a net margin of 7.84% and a return on equity of 15.82%. Yum China’s quarterly revenue was up 12.6% compared to the same quarter last year. During the same period last year, the business posted $0.58 earnings per share. On average, equities analysts anticipate that Yum China will post 2.95 EPS for the current year.

Yum China Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th were paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Thursday, August 27th. Yum China’s dividend payout ratio (DPR) is presently 42.49%.

Insider Activity at Yum China

In other Yum China news, insider Duoduo (Howard) Huang sold 24,096 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $47.08, for a total value of $1,134,439.68. Following the completion of the transaction, the insider owned 7,589 shares in the company, valued at approximately $357,290.12. This represents a 76.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jeff Kuai sold 14,586 shares of the firm’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total value of $696,043.92. Following the transaction, the insider directly owned 63,541 shares of the company’s stock, valued at $3,032,176.52. This represents a 18.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of YUMC. Teachers Retirement System of The State of Kentucky increased its position in shares of Yum China by 42.4% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 752,360 shares of the company’s stock valued at $36,701,000 after acquiring an additional 224,060 shares in the last quarter. Sapient Capital LLC bought a new position in Yum China in the 1st quarter valued at approximately $8,453,000. BlackRock Inc. purchased a new stake in Yum China during the 2nd quarter valued at $18,090,000. Nykredit A S bought a new stake in shares of Yum China in the 2nd quarter worth $7,154,000. Finally, GSA Capital Partners LLP purchased a new position in shares of Yum China in the second quarter worth $2,831,000. 85.58% of the stock is currently owned by institutional investors.

Yum China Company Profile

Yum China Holdings, Inc is a restaurant company that operates and franchises quick-service and casual-dining restaurants in China. Its portfolio includes KFC, Pizza Hut, Taco Bell, Lavasa, Huang Ji Huang, COFFii&JOY and East Dawning, offering products such as fried chicken, pizza, Mexican-inspired food, coffee and traditional Chinese cuisine.

KFC China and Pizza Hut China are the company’s principal brands, serving customers through restaurants, delivery and digital ordering channels.