Joey Wat Sells 4,613 Shares of Yum China (NYSE:YUMC) Stock

Yum China (NYSE:YUMC) CEO Joey Wat sold 4,613 shares of the stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $57.01, for a total value of $262,987.13. Following the sale, the chief executive officer directly owned 537,306 shares in the company, valued at approximately $30,631,815.06. The trade was a 0.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Yum China Trading Down 2.7%

NYSE:YUMC traded down $1.53 on Thursday, reaching $54.57. The stock had a trading volume of 562,506 shares, compared to its average volume of 1,421,813. Yum China has a 12-month low of $41.00 and a 12-month high of $58.39. The company has a market cap of $19.72 billion, a price-to-earnings ratio of 21.78, a P/E/G ratio of 1.62 and a beta of 0.14. The firm’s fifty day moving average is $49.15 and its two-hundred day moving average is $46.38. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15.

Yum China (NYSE:YUMC) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. The business had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.72 billion. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The company’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.30 earnings per share. Equities analysts expect that Yum China will post 2.54 EPS for the current fiscal year.

Yum China Increases Dividend

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

Yum China announced that its board has approved 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 purchase up to 5.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Yum China

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Yum China during the fourth quarter valued at $280,656,000. JPMorgan Chase & Co. increased its position in shares of Yum China by 21.5% in the second quarter. JPMorgan Chase & Co. now owns 29,150,667 shares of the company’s stock worth $1,303,326,000 after acquiring an additional 5,164,701 shares in the last quarter. Mondrian Investment Partners LTD lifted its position in shares of Yum China by 112.0% in the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company’s stock valued at $374,959,000 after acquiring an additional 4,148,966 shares in the last quarter. Principal Financial Group Inc. boosted its stake in Yum China by 14.8% in the 3rd quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock worth $883,687,000 after purchasing an additional 2,604,480 shares during the period. Finally, Carrhae Capital LLP purchased a new position in Yum China during the 2nd quarter worth approximately $48,868,000. Institutional investors own 85.58% of the company’s stock.

Analysts Set New Price Targets

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

About Yum China

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.