Yum China (NYSE:YUMC) Receives Consensus Rating of “Moderate Buy” from Brokerages

Yum China (NYSE:YUMC) has received a consensus recommendation of “Moderate Buy” from the four brokerages that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a hold rating and three have given a buy rating to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $59.0467.

YUMC has been the subject of several research analyst reports. CLSA reiterated an “outperform” rating and set a $55.00 target price on shares of Yum China in a research report on Tuesday, November 25th. Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Jefferies Financial Group reissued a “buy” rating and issued a $63.64 price objective on shares of Yum China in a research report on Thursday, February 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $58.50 target price on shares of Yum China in a research report on Wednesday, February 4th.

Yum China Stock Up 0.3%

Shares of NYSE:YUMC opened at $52.66 on Friday. The firm has a market capitalization of $18.59 billion, a PE ratio of 20.98, a price-to-earnings-growth ratio of 1.48 and a beta of 0.11. The business has a 50 day simple moving average of $51.90 and a two-hundred day simple moving average of $47.68. Yum China has a 1 year low of $41.00 and a 1 year high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.05 and a quick ratio of 0.85.

Yum China (NYSE:YUMC) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $0.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.82 billion during the quarter, compared to analysts’ expectations of $2.72 billion. Yum China had a return on equity of 14.65% and a net margin of 7.87%.Yum China’s revenue was up 8.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.30 EPS. On average, equities analysts predict that Yum China will post 2.54 EPS for the current year.

Yum China Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 2.2%. The ex-dividend date is Wednesday, March 4th. This is an increase from Yum China’s previous quarterly dividend of $0.24. Yum China’s dividend payout ratio (DPR) is 46.22%.

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

Insider Activity

In related news, insider Xueling Lu sold 23,504 shares of Yum China stock in a transaction dated 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 completion of the sale, the insider directly owned 9,042 shares in the company, valued at $504,905.28. The trade was a 72.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Joey Wat sold 104,000 shares of the firm’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $55.18, for a total transaction of $5,738,720.00. Following the transaction, the chief executive officer directly owned 433,306 shares in the company, valued at $23,909,825.08. This trade represents a 19.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 135,117 shares of company stock worth $7,479,590. Company insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Yum China

A number of large investors have recently bought and sold shares of YUMC. Jackson Grant Investment Advisers Inc. increased its holdings in shares of Yum China by 526.3% in the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock valued at $26,000 after acquiring an additional 500 shares during the period. Duncker Streett & Co. Inc. purchased a new stake in shares of Yum China during the 4th quarter worth $26,000. Elyxium Wealth LLC purchased a new stake in shares of Yum China during the 4th quarter worth $27,000. Quent Capital LLC bought a new stake in Yum China during the third quarter valued at about $28,000. Finally, Cresta Advisors Ltd. bought a new stake in Yum China during the fourth quarter valued at about $28,000. Institutional investors own 85.58% of the company’s stock.

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.