Yum China (NYSE:YUMC) Stock Has Consensus Target Price of $59.21

Key Points

• Yum China has a “Moderate Buy” consensus rating from four analysts, with three buys and one hold. The average 12-month price target is $59.21, above the reported stock price of $45.13.
• The company reported better-than-expected quarterly results, earning $0.70 per share versus a $0.67 estimate and generating $3.14 billion in revenue, up 12.6% year over year.
• Yum China paid a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a 2.6% yield. Institutional investors own 85.58% of the company, while insiders recently disclosed share sales.

Yum China (NYSE:YUMC - Get Free Report) has earned a consensus rating of "Moderate Buy" from the four analysts that are presently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a hold rating and three have issued a buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $59.21.

Several equities analysts recently issued reports on YUMC shares. The Goldman Sachs Group reaffirmed a "buy" rating and set a $59.00 price objective on shares of Yum China in a report on Thursday, July 30th. Wall Street Zen lowered Yum China from a "buy" rating to a "hold" rating in a report on Saturday, October 10th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a research report on Friday, August 21st.

Insider Activity

In other Yum China news, insider Duoduo (Howard) Huang sold 24,096 shares of the company's stock in a transaction dated 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 $357,290.12. This represents a 76.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jeff Kuai sold 14,586 shares of the firm's stock in a transaction that occurred 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 directly owned 63,541 shares of the company's stock, valued at approximately $3,032,176.52. This trade represents a 18.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Yum China

A number of institutional investors and hedge funds have recently bought and sold shares of YUMC. Principal Financial Group Inc. grew its holdings in Yum China by 3.0% during the 1st quarter. Principal Financial Group Inc. now owns 22,606,740 shares of the company's stock valued at $1,111,135,000 after buying an additional 649,629 shares during the last quarter. W1M Asset Management Ltd purchased a new position in Yum China during the second quarter worth $320,227,000. Bank of New York Mellon Corp acquired a new position in shares of Yum China in the second quarter worth $146,826,000. Bank of America Corp DE acquired a new position in shares of Yum China in the second quarter worth $96,255,000. Finally, Vontobel Holding Ltd. raised its holdings in shares of Yum China by 19.1% in the third quarter. Vontobel Holding Ltd. now owns 2,120,887 shares of the company's stock worth $87,168,000 after acquiring an additional 339,552 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Yum China Price Performance

YUMC stock opened at $45.13 on Friday. The firm has a 50 day moving average of $43.83 and a 200-day moving average of $44.83. Yum China has a 12-month low of $39.72 and a 12-month high of $58.39. The company has a current ratio of 0.96, a quick ratio of 0.78 and a debt-to-equity ratio of 0.01. The company has a market cap of $15.46 billion, a price-to-earnings ratio of 16.53, a PEG ratio of 1.19 and a beta of 0.07.

Yum China (NYSE:YUMC - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $3.05 billion. During the same quarter in the prior year, the firm posted $0.58 EPS. The company's revenue was up 12.6% compared to the same quarter last year. As a group, equities analysts expect that Yum China will post 2.95 EPS for the current fiscal year.

Yum China Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Thursday, August 27th were paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend was Thursday, August 27th. Yum China's dividend payout ratio is presently 42.49%.

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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