Yum China (NYSE:YUMC) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Yum China (NYSE:YUMC) from a hold rating to a buy rating in a research note issued to investors on Saturday.

Several other research firms also recently commented on YUMC. The Goldman Sachs Group reissued a “buy” rating and set a $58.50 price target on shares of Yum China in a research note on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. 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. Finally, CLSA reiterated an “outperform” rating and issued a $55.00 price objective on shares of Yum China in a report on Tuesday, November 25th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $59.05.

Yum China Trading Up 4.0%

NYSE YUMC opened at $57.87 on Friday. The company has a quick ratio of 1.15, a current ratio of 1.32 and a debt-to-equity ratio of 0.01. The stock’s 50-day simple moving average is $48.61 and its two-hundred day simple moving average is $46.20. Yum China has a twelve month low of $41.00 and a twelve month high of $58.39. The company has a market capitalization of $20.92 billion, a price-to-earnings ratio of 23.06, a PEG ratio of 1.65 and a beta of 0.14.

Yum China (NYSE:YUMC) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.35 by $0.05. The firm had revenue of $2.82 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period in the prior year, the company earned $0.30 EPS. Research analysts forecast that Yum China will post 2.54 EPS for the current fiscal year.

Yum China announced that its board has authorized a stock repurchase program on Friday, December 12th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Yum China Increases Dividend

The firm also recently declared 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 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend 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 is currently 38.25%.

Insiders Place Their Bets

In other news, insider Jeff Kuai sold 5,167 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $48.00, for a total transaction of $248,016.00. Following the transaction, the insider directly owned 56,602 shares of the company’s stock, valued at approximately $2,716,896. The trade was a 8.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jerry Ding sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $55.14, for a total value of $165,420.00. Following the transaction, the insider owned 915 shares of the company’s stock, valued at approximately $50,453.10. This represents a 76.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,242 shares of company stock valued at $1,043,817 in the last 90 days. 0.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Yum China

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Jackson Grant Investment Advisers Inc. lifted its holdings in Yum China by 526.3% in the third 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. Duncker Streett & Co. Inc. purchased a new position in shares of Yum China in the 4th quarter valued at approximately $26,000. Elyxium Wealth LLC bought a new stake in shares of Yum China during the fourth quarter valued at approximately $27,000. Quent Capital LLC purchased a new stake in Yum China in the third quarter worth $28,000. Finally, Cresta Advisors Ltd. purchased a new stake in Yum China in the fourth quarter worth $28,000. Hedge funds and other institutional investors own 85.58% of the company’s stock.

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.