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 business’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the transaction, the insider directly owned 9,042 shares in the company, valued at approximately $504,905.28. The trade was a 72.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Yum China Price Performance

Shares of YUMC stock opened at $54.89 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15. The company has a market capitalization of $19.84 billion, a PE ratio of 21.87, a price-to-earnings-growth ratio of 1.57 and a beta of 0.14. The firm’s 50-day moving average is $51.02 and its two-hundred day moving average is $47.15. Yum China has a 12 month low of $41.00 and a 12 month high of $58.39.

Yum China (NYSE:YUMC) last announced 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. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The business had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.72 billion. During the same quarter last year, the firm earned $0.30 EPS. The business’s revenue was up 8.8% compared to the same quarter last year. Analysts predict that Yum China will post 2.54 earnings per share for the current year.

Yum China declared that its Board of Directors has approved a stock buyback plan on Friday, December 12th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its stock is undervalued.

Yum China Increases Dividend

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

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Broad Peak Investment Advisers Pte Ltd acquired a new stake in Yum China in the 3rd quarter valued at about $27,679,000. Massachusetts Financial Services Co. MA increased its stake in shares of Yum China by 14.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 4,734,295 shares of the company’s stock worth $203,196,000 after buying an additional 591,251 shares during the period. Pictet North America Advisors SA increased its stake in shares of Yum China by 4.9% during the third quarter. Pictet North America Advisors SA now owns 497,944 shares of the company’s stock worth $21,299,000 after buying an additional 23,096 shares during the period. Principal Financial Group Inc. raised its holdings in Yum China by 14.8% in the third quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock valued at $883,687,000 after acquiring an additional 2,604,480 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in Yum China by 21.5% in the second quarter. JPMorgan Chase & Co. now owns 29,150,667 shares of the company’s stock worth $1,303,326,000 after acquiring an additional 5,164,701 shares during the last quarter. Institutional investors and hedge funds own 85.58% of the company’s stock.

Analysts Set New Price Targets

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

About Yum China

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.