Yum China (NYSE:YUMC) Given Average Rating of “Buy” by Brokerages

Shares of Yum China (NYSE:YUMC) have been assigned an average recommendation of “Buy” from the three ratings firms that are currently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $55.00.

A number of equities research analysts have weighed in on YUMC shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a report on Wednesday, October 8th. CLSA reissued an “outperform” rating and set a $55.00 price target on shares of Yum China in a research note on Tuesday, November 25th.

Yum China Stock Performance

Shares of YUMC traded down $0.85 during mid-day trading on Friday, reaching $47.34. 295,128 shares of the company’s stock traded hands, compared to its average volume of 962,335. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.15 and a current ratio of 1.32. Yum China has a 12 month low of $41.00 and a 12 month high of $53.99. The business’s 50-day moving average price is $47.49 and its 200-day moving average price is $45.82. The stock has a market capitalization of $17.11 billion, a P/E ratio of 19.63, a price-to-earnings-growth ratio of 1.53 and a beta of 0.14.

Yum China (NYSE:YUMC) last issued its quarterly earnings results on Tuesday, November 4th. The company reported $0.76 EPS for the quarter, hitting the consensus estimate of $0.76. Yum China had a net margin of 7.81% and a return on equity of 14.08%. The firm had revenue of $3.21 billion for the quarter, compared to analysts’ expectations of $3.20 billion. During the same period in the previous year, the business earned $0.77 earnings per share. Yum China’s revenue for the quarter was up 4.4% compared to the same quarter last year. Equities analysts predict that Yum China will post 2.54 earnings per share for the current year.

Yum China Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 23rd. Investors of record on Tuesday, December 2nd were given a $0.24 dividend. The ex-dividend date was Tuesday, December 2nd. This represents a $0.96 annualized dividend and a dividend yield of 2.0%. Yum China’s payout ratio is currently 39.83%.

Yum China declared that its board has authorized a share repurchase program on Friday, December 12th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to buy up to 5.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In other Yum China news, insider Warton Wang sold 8,187 shares of the stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $48.28, for a total value of $395,268.36. Following the transaction, the insider directly owned 46,847 shares of the company’s stock, valued at $2,261,773.16. This represents a 14.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Duoduo (Howard) Huang sold 4,888 shares of Yum China stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $48.10, for a total transaction of $235,112.80. Following the completion of the sale, the insider owned 22,510 shares of the company’s stock, valued at $1,082,731. This trade represents a 17.84% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 18,242 shares of company stock worth $878,397. Corporate insiders own 0.40% of the company’s stock.

Institutional Trading of Yum China

A number of institutional investors and hedge funds have recently modified their holdings of YUMC. Jackson Grant Investment Advisers Inc. boosted its position 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 worth $26,000 after purchasing an additional 500 shares in the last quarter. Quent Capital LLC purchased a new position in shares of Yum China during the third quarter valued at approximately $28,000. Bell Investment Advisors Inc lifted its position in Yum China by 95.6% during the second 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. Marshall & Sullivan Inc. WA purchased a new stake in Yum China in the second quarter worth approximately $36,000. Finally, Miller Global Investments LLC purchased a new position in shares of Yum China in the 4th quarter worth $41,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

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.