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

Shares of Yum China (NYSE:YUMC) have been given a consensus recommendation of “Moderate Buy” by the four ratings firms that are currently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a hold rating and three have issued a buy rating on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $59.0467.

A number of analysts have recently issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. The Goldman Sachs Group reiterated a “buy” rating and set a $58.50 price target on shares of Yum China in a research note on Wednesday, February 4th. Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $63.64 target price on shares of Yum China in a research report on Thursday, February 5th.

Yum China Stock Down 0.1%

Shares of YUMC opened at $49.15 on Wednesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.85 and a current ratio of 1.05. The company has a 50-day simple moving average of $52.82 and a 200-day simple moving average of $48.40. Yum China has a 52 week low of $41.00 and a 52 week high of $58.39. The firm has a market capitalization of $17.36 billion, a P/E ratio of 19.58, a P/E/G ratio of 1.39 and a beta of 0.17.

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, beating the consensus estimate of $0.35 by $0.05. Yum China had a return on equity of 14.65% and a net margin of 7.87%.The firm had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.72 billion. During the same period in the previous year, the company posted $0.30 earnings per share. The company’s quarterly revenue was up 8.8% compared to the same quarter last year. On average, equities research analysts expect that Yum China will post 2.54 earnings per share for the current year.

Yum China declared that its board has initiated a stock repurchase program on Friday, December 12th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 5.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Yum China Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th were issued a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Wednesday, March 4th. This is a boost from Yum China’s previous quarterly dividend of $0.24. Yum China’s payout ratio is currently 46.22%.

Insider Activity

In other news, insider Xueling Lu sold 23,504 shares of the business’s stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total value of $1,312,463.36. Following the sale, the insider 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 document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Joey Wat sold 104,000 shares of Yum China 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 of the company’s stock, valued at $23,909,825.08. This represents a 19.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 135,117 shares of company stock worth $7,479,590. Corporate insiders own 0.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Ashoka WhiteOak Capital Pte Ltd grew its holdings in shares of Yum China by 0.7% during the fourth quarter. Ashoka WhiteOak Capital Pte Ltd now owns 28,350 shares of the company’s stock worth $1,342,000 after purchasing an additional 200 shares during the last quarter. Glenview Trust Co increased its position in Yum China by 4.3% in the 4th quarter. Glenview Trust Co now owns 4,904 shares of the company’s stock valued at $234,000 after acquiring an additional 200 shares in the last quarter. Truist Financial Corp raised its stake in shares of Yum China by 0.3% in the fourth quarter. Truist Financial Corp now owns 68,009 shares of the company’s stock worth $3,247,000 after acquiring an additional 211 shares during the last quarter. Biltmore Family Office LLC lifted its position in shares of Yum China by 3.1% during the fourth quarter. Biltmore Family Office LLC now owns 7,111 shares of the company’s stock worth $339,000 after purchasing an additional 216 shares in the last quarter. Finally, Williams Jones Wealth Management LLC. grew its stake in shares of Yum China by 2.7% during the fourth quarter. Williams Jones Wealth Management LLC. now owns 8,258 shares of the company’s stock valued at $394,000 after purchasing an additional 221 shares during the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

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.