Headwater Capital Co Ltd Trims Holdings in Yum China $YUMC

Headwater Capital Co Ltd reduced its stake in shares of Yum China (NYSE:YUMC) by 16.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 100,000 shares of the company’s stock after selling 19,700 shares during the period. Yum China accounts for about 0.9% of Headwater Capital Co Ltd’s investment portfolio, making the stock its 16th largest position. Headwater Capital Co Ltd’s holdings in Yum China were worth $4,774,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also modified their holdings of the stock. Principal Financial Group Inc. lifted its holdings in shares of Yum China by 8.9% during the 4th quarter. Principal Financial Group Inc. now owns 21,957,111 shares of the company’s stock worth $1,039,945,000 after acquiring an additional 1,787,450 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Yum China by 1.0% during the 3rd quarter. Vanguard Group Inc. now owns 15,545,068 shares of the company’s stock worth $680,252,000 after acquiring an additional 158,607 shares during the period. Mondrian Investment Partners LTD lifted its holdings in shares of Yum China by 112.0% during the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company’s stock worth $374,959,000 after acquiring an additional 4,148,966 shares during the period. Norges Bank purchased a new position in shares of Yum China during the 4th quarter worth about $280,656,000. Finally, Alliancebernstein L.P. lifted its holdings in shares of Yum China by 13.1% during the 2nd quarter. Alliancebernstein L.P. now owns 5,871,382 shares of the company’s stock worth $262,509,000 after acquiring an additional 677,928 shares during the period. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on YUMC shares. Wall Street Zen lowered shares of Yum China from a “buy” rating to a “hold” rating in a report on Sunday, June 7th. Weiss Ratings lowered shares of Yum China from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, May 26th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Yum China currently has an average rating of “Moderate Buy” and an average target price of $59.05.

Yum China Stock Down 0.7%

YUMC opened at $43.48 on Friday. The firm has a 50 day moving average price of $46.62 and a 200 day moving average price of $49.14. The company has a market cap of $15.18 billion, a PE ratio of 16.66, a price-to-earnings-growth ratio of 1.23 and a beta of 0.09. Yum China has a 1 year low of $41.69 and a 1 year high of $58.39. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.83 and a current ratio of 1.01.

Yum China (NYSE:YUMC) last posted its earnings results on Wednesday, April 29th. The company reported $0.87 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.87. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.21 billion. Yum China had a net margin of 7.83% and a return on equity of 15.11%. The company’s revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.77 EPS. Sell-side analysts expect that Yum China will post 2.95 earnings per share for the current year.

Yum China Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Wednesday, May 27th will be given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Wednesday, May 27th. Yum China’s dividend payout ratio is 44.44%.

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.