Headwater Capital Co Ltd Sells 99,850 Shares of Yum China $YUMC

Headwater Capital Co Ltd lessened its stake in Yum China (NYSE:YUMC) by 45.5% in the third quarter, HoldingsChannel reports. The firm owned 119,700 shares of the company’s stock after selling 99,850 shares during the period. Yum China accounts for about 1.3% of Headwater Capital Co Ltd’s holdings, making the stock its 15th biggest position. Headwater Capital Co Ltd’s holdings in Yum China were worth $5,138,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in the stock. Jackson Grant Investment Advisers Inc. grew its position in shares of Yum China by 526.3% during the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock worth $26,000 after buying an additional 500 shares during the period. Quent Capital LLC bought a new position in Yum China during the 3rd quarter worth approximately $28,000. Bell Investment Advisors Inc boosted its stake in Yum China by 95.6% during the 2nd quarter. Bell Investment Advisors Inc now owns 665 shares of the company’s stock worth $30,000 after acquiring an additional 325 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new position in Yum China during the second quarter valued at approximately $45,000. Finally, Hantz Financial Services Inc. increased its stake in Yum China by 76.3% in the second 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. Institutional investors and hedge funds own 85.58% of the company’s stock.

Analyst Ratings Changes

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

Insider Transactions at Yum China

In related news, insider Xueling Lu sold 23,504 shares of the company’s stock in a transaction dated 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 transaction, the insider directly owned 9,042 shares in the company, valued at approximately $504,905.28. This represents a 72.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Joey Wat sold 104,000 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The stock was 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 in the company, valued at $23,909,825.08. This represents a 19.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 135,117 shares of company stock valued at $7,479,590. 0.40% of the stock is currently owned by corporate insiders.

Yum China Trading Up 0.8%

Shares of Yum China stock opened at $56.44 on Thursday. The stock has a market cap of $20.40 billion, a P/E ratio of 22.49, a P/E/G ratio of 1.58 and a beta of 0.14. 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 has a 12-month low of $41.00 and a 12-month high of $58.39. The business’s 50 day moving average is $50.74 and its 200-day moving average is $47.02.

Yum China (NYSE:YUMC) last issued its 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. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The company had revenue of $2.82 billion for the quarter, compared to analysts’ expectations of $2.72 billion. During the same period in the prior year, the firm earned $0.30 EPS. Yum China’s quarterly revenue was up 8.8% compared to the same quarter last year. Equities research analysts predict that Yum China will post 2.54 earnings per share for the current fiscal year.

Yum China Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 2.1%. The ex-dividend date is Wednesday, March 4th. This is a positive change from Yum China’s previous quarterly dividend of $0.24. Yum China’s dividend payout ratio (DPR) is 38.25%.

Yum China declared that its Board of Directors has approved a stock buyback program on Friday, December 12th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

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.