Key Points
- Yum China CEO Joey Wat sold 4,613 shares on Feb. 11 at an average price of $57.01 for total proceeds of $262,987, trimming her holding by 0.85% to 537,306 shares valued at about $30.63M.
- The company raised its quarterly dividend to $0.29 (annualized $1.16, ~2.2% yield) and the board authorized a $1.00 billion share buyback program to repurchase up to 5.8% of outstanding shares.
- Yum China topped expectations with $0.40 EPS vs. $0.35 expected and revenue of $2.82B (up 8.8% YoY), and analysts hold a consensus "Moderate Buy" with a $59.05 target.
Yum China (NYSE:YUMC - Get Free Report) CEO Joey Wat sold 4,613 shares of the company's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $57.01, for a total transaction of $262,987.13. Following the completion of the transaction, the chief executive officer directly owned 537,306 shares in the company, valued at $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 available through the SEC website.
Yum China Stock Performance
Shares of YUMC stock opened at $53.69 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.15 and a current ratio of 1.32. The firm has a market cap of $19.41 billion, a P/E ratio of 21.39, a P/E/G ratio of 1.59 and a beta of 0.14. The firm's 50 day moving average price is $49.30 and its 200-day moving average price is $46.43. Yum China has a one year low of $41.00 and a one year high of $58.39.
Yum China (NYSE:YUMC - Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. Yum China had a return on equity of 14.46% and a net margin of 7.87%.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 earnings per share. The firm's revenue was up 8.8% compared to the same quarter last year. As a group, equities research analysts predict that Yum China will post 2.54 EPS for the current year.
Yum China Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be given a $0.29 dividend. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.16 annualized dividend and a yield of 2.2%. This is an increase from Yum China's previous quarterly dividend of $0.24. Yum China's dividend payout ratio is presently 38.25%.
Yum China announced that its Board of Directors has initiated a share buyback program on Friday, December 12th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 5.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.
Hedge Funds Weigh In On Yum China
Hedge funds have recently added to or reduced their stakes in the stock. Ashoka WhiteOak Capital Pte Ltd boosted its holdings in shares of Yum China by 0.7% in the 4th quarter. Ashoka WhiteOak Capital Pte Ltd now owns 28,350 shares of the company's stock valued at $1,342,000 after buying an additional 200 shares in the last quarter. Glenview Trust Co lifted its position in Yum China by 4.3% in the fourth quarter. Glenview Trust Co now owns 4,904 shares of the company's stock valued at $234,000 after acquiring an additional 200 shares during the last quarter. Truist Financial Corp boosted its stake in Yum China by 0.3% in the fourth quarter. Truist Financial Corp now owns 68,009 shares of the company's stock valued at $3,247,000 after acquiring an additional 211 shares in the last quarter. Biltmore Family Office LLC grew its holdings in shares of Yum China by 3.1% during the fourth quarter. Biltmore Family Office LLC now owns 7,111 shares of the company's stock worth $339,000 after purchasing an additional 216 shares during the last quarter. Finally, Turning Point Benefit Group Inc. increased its position in shares of Yum China by 13.9% during the fourth quarter. Turning Point Benefit Group Inc. now owns 1,824 shares of the company's stock worth $87,000 after purchasing an additional 222 shares in the last quarter. 85.58% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets
YUMC has been the subject of a number of research reports. CLSA restated an "outperform" rating and issued a $55.00 price objective on shares of Yum China in a report on Tuesday, November 25th. Wall Street Zen raised Yum China from a "hold" rating to a "buy" rating in a research report on Saturday, February 7th. The Goldman Sachs Group reiterated a "buy" rating and issued a $58.50 target price on shares of Yum China in a report on Wednesday, February 4th. Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a report on Wednesday, January 21st. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $63.64 price objective on shares of Yum China in a research note on Thursday, February 5th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Yum China has a consensus rating of "Moderate Buy" and a consensus target price of $59.05.
Check Out Our Latest Report on Yum China
Yum China Company Profile
(
Get Free Report)
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.
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