Yum China (NYSE:YUMC) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Yum China from “buy” to “hold,” although analysts overall maintain a “Moderate Buy” consensus with an average price target of $59.21.
• Yum China reported quarterly EPS of $0.70, exceeding estimates of $0.67, while revenue reached $3.14 billion, up 12.6% year over year and ahead of expectations.
• Several insiders sold shares, while institutional investors own a substantial 85.58% of the company’s stock.

Yum China (NYSE:YUMC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts also recently issued reports on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a report on Friday, August 21st. The Goldman Sachs Group reiterated a "buy" rating and issued a $59.00 target price on shares of Yum China in a research note on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $59.21.

Yum China Trading Up 2.7%

Shares of Yum China stock opened at $42.90 on Friday. Yum China has a 1 year low of $39.72 and a 1 year high of $58.39. The company's fifty day simple moving average is $44.24 and its 200-day simple moving average is $45.08. The company has a market cap of $14.69 billion, a price-to-earnings ratio of 15.71, a PEG ratio of 1.10 and a beta of 0.07. The company has a current ratio of 0.96, a quick ratio of 0.78 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.67 by $0.03. Yum China had a net margin of 7.84% and a return on equity of 15.82%. The firm had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.05 billion. During the same period in the prior year, the company earned $0.58 EPS. The business's quarterly revenue was up 12.6% compared to the same quarter last year. As a group, sell-side analysts expect that Yum China will post 2.95 EPS for the current year.

Insiders Place Their Bets

In other news, insider Duoduo (Howard) Huang sold 24,096 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $47.08, for a total transaction of $1,134,439.68. Following the completion of the transaction, the insider directly owned 7,589 shares of the company's stock, valued at approximately $357,290.12. This trade represents a 76.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jeff Kuai sold 14,586 shares of Yum China stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total transaction of $696,043.92. Following the sale, the insider owned 63,541 shares in the company, valued at approximately $3,032,176.52. This trade represents a 18.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Yum China

A number of hedge funds have recently modified their holdings of YUMC. Farther Finance Advisors LLC lifted its position in shares of Yum China by 38.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 3,344 shares of the company's stock worth $137,000 after buying an additional 934 shares during the period. Apella Capital LLC acquired a new position in Yum China during the third quarter worth $219,000. Applied Capital LLC FL raised its stake in Yum China by 168.7% during the third quarter. Applied Capital LLC FL now owns 22,245 shares of the company's stock worth $914,000 after acquiring an additional 13,967 shares in the last quarter. Envestnet Portfolio Solutions Inc. bought a new position in shares of Yum China during the second quarter valued at $523,000. Finally, Tidal Investments LLC bought a new position in shares of Yum China during the second quarter valued at $3,192,000. 85.58% of the stock is owned by institutional investors and hedge funds.

About Yum China

Yum China Holdings, Inc is a restaurant company that operates and franchises quick-service and casual-dining restaurants in China. Its portfolio includes KFC, Pizza Hut, Taco Bell, Lavasa, Huang Ji Huang, COFFii&JOY and East Dawning, offering products such as fried chicken, pizza, Mexican-inspired food, coffee and traditional Chinese cuisine.

KFC China and Pizza Hut China are the company's principal brands, serving customers through restaurants, delivery and digital ordering channels.

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