Yum China (NYSE:YUMC) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts give Yum China a “Moderate Buy” consensus: Three of four analysts rate the stock a buy, while one recommends holding it. The average 12-month price target is $59.21, above the reported $41.54 share price.
• Yum China exceeded quarterly expectations: The company reported $0.70 in EPS and $3.14 billion in revenue, surpassing estimates of $0.67 and $3.05 billion, respectively. Revenue increased 12.6% year over year.
• Insiders reduced their holdings while institutions expanded theirs: Two insiders sold shares, and institutional investors own 85.58% of the company. Yum China also pays a quarterly dividend of $0.29 per share, yielding approximately 2.8% annually.

Yum China (NYSE:YUMC - Get Free Report) has received an average recommendation of "Moderate Buy" from the four ratings firms that are presently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a hold rating and three have issued a buy rating on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $59.2133.

YUMC has been the subject of several research reports. Wall Street Zen upgraded shares of Yum China from a "hold" rating to a "buy" rating in a research report on Monday, August 17th. The Goldman Sachs Group reissued a "buy" rating and set a $59.00 price target on shares of Yum China in a report on Thursday, July 30th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Yum China in a report on Friday, August 21st.

Insider Activity at Yum China

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Principal Financial Group Inc. grew its position in Yum China by 3.0% in the first quarter. Principal Financial Group Inc. now owns 22,606,740 shares of the company's stock valued at $1,111,135,000 after acquiring an additional 649,629 shares during the last quarter. W1M Asset Management Ltd bought a new stake in shares of Yum China during the second quarter worth about $320,227,000. Norges Bank bought a new position in shares of Yum China during the 4th quarter worth approximately $280,656,000. Bank of New York Mellon Corp bought a new stake in shares of Yum China in the 2nd quarter worth approximately $146,826,000. Finally, Bank of America Corp DE bought a new stake in shares of Yum China during the 2nd quarter valued at $96,255,000. 85.58% of the stock is owned by institutional investors.

Yum China Trading Up 0.2%

Yum China stock opened at $41.54 on Wednesday. The stock has a 50-day simple moving average of $45.17 and a 200 day simple moving average of $46.12. The stock has a market capitalization of $14.23 billion, a P/E ratio of 15.22, a PEG ratio of 1.09 and a beta of 0.08. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.78 and a current ratio of 0.96. Yum China has a 52 week low of $40.15 and a 52 week high of $58.39.

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

Yum China Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th were given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Thursday, August 27th. Yum China's dividend payout ratio is presently 42.49%.

Yum China Company Profile

Yum China Holdings, Inc NYSE: YUMC is a restaurant company that operates and franchises brands across mainland China. It is the exclusive operator of KFC and Pizza Hut in China and also operates Taco Bell restaurants in the market.

The company's broader portfolio includes Chinese restaurant concepts such as Huang Ji Huang and Little Sheep, as well as coffee and beverage brands including Lavasa and COFFii & JOY. Its restaurants offer a range of quick-service meals, casual dining options, beverages and related food products through dine-in, takeaway, delivery and digital ordering channels.

Yum China became an independent, publicly traded company in 2016 following its separation from Yum! Brands.

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