Yum China (NYSE:YUMC) Stock Has Consensus Target Price of $59.21 According to Analysts

Shares of Yum China (NYSE:YUMC) have been given an average rating of “Moderate Buy” by the four ratings firms that are presently covering the company, Marketbeat reports. One investment analyst has rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $59.21.

A number of research firms have weighed in on YUMC. The Goldman Sachs Group reiterated a “buy” rating and set a $59.00 target price on shares of Yum China in a report on Thursday, July 30th. Wall Street Zen upgraded Yum China from a “hold” rating to a “buy” rating in a research note on Monday, August 17th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a research report on Friday, August 21st.

Yum China Trading Down 1.4%

Shares of YUMC opened at $40.40 on Wednesday. The firm’s 50-day moving average price is $44.98 and its 200-day moving average price is $45.92. The firm has a market capitalization of $13.83 billion, a price-to-earnings ratio of 14.80, a PEG ratio of 1.08 and a beta of 0.08. The company has a current ratio of 0.96, a quick ratio of 0.78 and a debt-to-equity ratio of 0.01. Yum China has a 1-year low of $40.15 and a 1-year high of $58.39.

Yum China (NYSE:YUMC) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.03. Yum China had a net margin of 7.84% and a return on equity of 15.82%. The company had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.05 billion. During the same quarter in the previous year, the company earned $0.58 earnings per share. Yum China’s quarterly revenue was up 12.6% on a year-over-year basis. Sell-side analysts anticipate that Yum China will post 2.95 EPS for the current year.

Yum China Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th were given a dividend of $0.29 per share. The ex-dividend date of this dividend was Thursday, August 27th. This represents a $1.16 annualized dividend and a yield of 2.9%. Yum China’s dividend payout ratio (DPR) is currently 42.49%.

Insiders Place Their Bets

In other news, insider Duoduo (Howard) Huang sold 24,096 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $47.08, for a total value of $1,134,439.68. Following the sale, the insider directly owned 7,589 shares of the company’s stock, valued at $357,290.12. This represents a 76.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jeff Kuai sold 14,586 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $47.72, for a total transaction of $696,043.92. Following the completion of the transaction, the insider owned 63,541 shares of the company’s stock, valued at approximately $3,032,176.52. The trade was a 18.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Yum China

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Teachers Retirement System of The State of Kentucky lifted its position in 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 purchasing an additional 224,060 shares during the period. Sapient Capital LLC bought a new stake in Yum China in the 1st quarter worth approximately $8,453,000. Principal Financial Group Inc. grew its position in Yum China by 3.0% in the 1st quarter. Principal Financial Group Inc. now owns 22,606,740 shares of the company’s stock worth $1,111,135,000 after purchasing an additional 649,629 shares during the period. GSA Capital Partners LLP purchased a new stake in Yum China during the 2nd quarter valued at $2,831,000. Finally, Assetmark Inc. raised its stake in Yum China by 16.0% during the 1st quarter. Assetmark Inc. now owns 627,455 shares of the company’s stock valued at $30,607,000 after buying an additional 86,550 shares during the last quarter. Institutional investors own 85.58% of the company’s stock.

About Yum China

Yum China Holdings, Inc (NYSE:YUMC) is a restaurant company that operates and franchises brands across mainland China. It is the exclusive operator of KFC and Pizza Hut in China and also operates Taco Bell restaurants in the market.

The company’s broader portfolio includes Chinese restaurant concepts such as Huang Ji Huang and Little Sheep, as well as coffee and beverage brands including Lavasa and COFFii & JOY. Its restaurants offer a range of quick-service meals, casual dining options, beverages and related food products through dine-in, takeaway, delivery and digital ordering channels.

Yum China became an independent, publicly traded company in 2016 following its separation from Yum! Brands.