Alberta Investment Management Corp Cuts Stake in Yum China $YUMC

Alberta Investment Management Corp cut its position in Yum China (NYSE:YUMC) by 1.7% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,640,100 shares of the company’s stock after selling 27,800 shares during the period. Yum China accounts for approximately 0.7% of Alberta Investment Management Corp’s investment portfolio, making the stock its 9th biggest holding. Alberta Investment Management Corp’s holdings in Yum China were worth $70,393,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Quent Capital LLC acquired a new position in shares of Yum China during the third quarter worth approximately $28,000. Bell Investment Advisors Inc grew its position in Yum China by 95.6% in the 2nd quarter. Bell Investment Advisors Inc now owns 665 shares of the company’s stock valued at $30,000 after purchasing an additional 325 shares during the period. Atlantic Union Bankshares Corp bought a new stake in Yum China during the 2nd quarter valued at $45,000. Hantz Financial Services Inc. increased its stake in Yum China by 76.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,070 shares of the company’s stock valued at $48,000 after purchasing an additional 463 shares in the last quarter. Finally, Caldwell Trust Co acquired a new position in Yum China during the second quarter worth $56,000. Institutional investors own 85.58% of the company’s stock.

Insiders Place Their Bets

In related news, CEO Joey Wat sold 104,000 shares of the business’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $55.18, for a total value of $5,738,720.00. Following the transaction, the chief executive officer directly owned 433,306 shares of the company’s stock, valued at approximately $23,909,825.08. The trade was a 19.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Duoduo (Howard) Huang sold 4,888 shares of the stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $48.10, for a total transaction of $235,112.80. Following the transaction, the insider owned 22,510 shares of the company’s stock, valued at approximately $1,082,731. The trade was a 17.84% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 124,688 shares of company stock valued at $6,797,508. 0.40% of the stock is owned by company insiders.

Yum China Trading Up 0.7%

Shares of YUMC stock opened at $55.33 on Thursday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.15 and a current ratio of 1.32. The company has a market capitalization of $20.00 billion, a price-to-earnings ratio of 22.04, a PEG ratio of 1.56 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 company has a 50-day simple moving average of $50.01 and a two-hundred day simple moving average of $46.67.

Yum China (NYSE:YUMC) last announced its earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The firm had revenue of $2.82 billion for 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%.The company’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. Research analysts anticipate that Yum China will post 2.54 EPS for the current fiscal year.

Yum China declared that its board has approved a stock repurchase plan on Friday, December 12th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its shares are undervalued.

Yum China Increases Dividend

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

Wall Street Analysts Forecast Growth

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

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.