Yum China (NYSE:YUMC) Receives $59.05 Consensus PT from Brokerages

Yum China (NYSE:YUMC) has been given a consensus rating of “Moderate Buy” by the four research firms that are covering the company, MarketBeat reports. One research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $59.0467.

Several equities research analysts have recently weighed in on YUMC shares. 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 reissued a “buy” rating and set a $63.64 target price on shares of Yum China in a research note on Thursday, February 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st. Wall Street Zen upgraded Yum China from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Finally, 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.

Yum China Price Performance

NYSE YUMC opened at $53.69 on Tuesday. The company has a market capitalization of $19.41 billion, a PE ratio of 21.39, a price-to-earnings-growth ratio of 1.59 and a beta of 0.14. 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 business’s fifty day moving average is $49.30 and its 200 day moving average is $46.43. Yum China has a fifty-two week low of $41.00 and a fifty-two week high of $58.39.

Yum China (NYSE:YUMC) last released its 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 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 quarter last year, the business earned $0.30 EPS. The firm’s revenue was up 8.8% compared to the same quarter last year. Sell-side analysts predict that Yum China will post 2.54 earnings per share for the current year.

Yum China declared that its Board of Directors has initiated a stock buyback plan on Friday, December 12th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership 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. Investors of record on Wednesday, March 4th will be issued a $0.29 dividend. This is a boost from Yum China’s previous quarterly dividend of $0.24. The ex-dividend date is Wednesday, March 4th. This represents a $1.16 annualized dividend and a yield of 2.2%. Yum China’s dividend payout ratio is currently 38.25%.

Insider Buying and Selling at Yum China

In other news, insider Warton Wang sold 8,187 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $48.28, for a total value of $395,268.36. Following the completion of the sale, the insider directly owned 46,847 shares in the company, valued at $2,261,773.16. This represents a 14.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeff Kuai sold 5,167 shares of the company’s stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $48.00, for a total transaction of $248,016.00. Following the completion of the transaction, the insider directly owned 56,602 shares in the company, valued at $2,716,896. The trade was a 8.37% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 25,855 shares of company stock worth $1,306,804. 0.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Yum China

A number of large investors have recently added to or reduced their stakes in the business. Jackson Grant Investment Advisers Inc. grew 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 valued at $26,000 after purchasing an additional 500 shares during the period. Duncker Streett & Co. Inc. bought a new stake in shares of Yum China in the 4th quarter worth about $26,000. Elyxium Wealth LLC acquired a new stake in shares of Yum China in the 4th quarter valued at about $27,000. Quent Capital LLC acquired a new stake in shares of Yum China during the 3rd quarter valued at approximately $28,000. Finally, Cresta Advisors Ltd. acquired a new stake in shares of Yum China during the fourth quarter worth $28,000. 85.58% of the stock is owned by institutional investors and hedge funds.

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.