Yum China (NYSE:YUMC) CEO Joey Wat Sells 4,613 Shares

Yum China (NYSE:YUMC) CEO Joey Wat sold 4,613 shares of the business’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $57.01, for a total value of $262,987.13. Following the completion of the transaction, the chief executive officer directly owned 537,306 shares of the company’s stock, valued at approximately $30,631,815.06. This trade represents a 0.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Yum China Stock Down 4.3%

Shares of YUMC opened at $53.69 on Friday. The company has a market capitalization of $19.41 billion, a price-to-earnings ratio of 21.39, a PEG ratio of 1.59 and a beta of 0.14. Yum China has a 52 week low of $41.00 and a 52 week high of $58.39. The stock’s 50-day moving average price is $49.30 and its 200-day moving average price is $46.43. The company has a quick ratio of 1.15, a current ratio of 1.32 and a debt-to-equity ratio of 0.01.

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, beating analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.72 billion. Yum China had a return on equity of 14.46% and a net margin of 7.87%.Yum China’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.30 earnings per share. On average, sell-side analysts predict that Yum China will post 2.54 EPS for the current year.

Yum China announced that its board has approved a share buyback plan on Friday, December 12th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 5.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Yum China Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Wednesday, March 4th. This is an increase from Yum China’s previous quarterly dividend of $0.24. Yum China’s dividend payout ratio is currently 38.25%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of YUMC. Quadrant Capital Group LLC raised its stake in Yum China by 5,028.1% during the fourth quarter. Quadrant Capital Group LLC now owns 7,487 shares of the company’s stock worth $357,000 after purchasing an additional 7,341 shares during the period. Advisors Asset Management Inc. increased its holdings in shares of Yum China by 3.0% during the 4th quarter. Advisors Asset Management Inc. now owns 13,526 shares of the company’s stock worth $646,000 after buying an additional 390 shares during the last quarter. Orion Porfolio Solutions LLC lifted its holdings in Yum China by 29.8% in the fourth quarter. Orion Porfolio Solutions LLC now owns 28,290 shares of the company’s stock valued at $1,351,000 after acquiring an additional 6,495 shares during the last quarter. Pinebridge Investments Asia Ltd. purchased a new position in Yum China in the fourth quarter worth approximately $7,104,000. Finally, Intesa Sanpaolo S.p.A. acquired a new stake in Yum China during the fourth quarter worth $373,000. Institutional investors and hedge funds own 85.58% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. CLSA restated an “outperform” rating and issued a $55.00 price objective on shares of Yum China in a research report on Tuesday, November 25th. 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 issued a $58.50 target price on shares of Yum China in a research report on Wednesday, February 4th. Jefferies Financial Group restated a “buy” rating and set a $63.64 price target on shares of Yum China in a research report on Thursday, February 5th. Finally, Wall Street Zen upgraded Yum China from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, Yum China has an average rating of “Moderate Buy” and a consensus price target 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.