Expect Equity LLC Takes $2.30 Million Position in Yum China $YUMC

Key Points

• Expect Equity LLC acquired a new $2.3 million stake in Yum China during the second quarter, purchasing 56,360 shares. Institutional investors collectively own 85.58% of the company.
• Yum China exceeded quarterly expectations, reporting $0.70 EPS and $3.14 billion in revenue, with revenue rising 12.6% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $59.21.
• The company declared a quarterly dividend of $0.29 per share, equivalent to a 2.4% yield, while two insiders sold shares worth a combined approximately $1.83 million in August.

Expect Equity LLC purchased a new stake in Yum China (NYSE:YUMC - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 56,360 shares of the company's stock, valued at approximately $2,303,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Focus Partners Wealth grew its position in shares of Yum China by 13.8% in the first quarter. Focus Partners Wealth now owns 21,289 shares of the company's stock valued at $1,108,000 after purchasing an additional 2,582 shares during the period. Strs Ohio acquired a new position in shares of Yum China during the 1st quarter worth about $99,000. EverSource Wealth Advisors LLC lifted its stake in Yum China by 60.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,522 shares of the company's stock valued at $68,000 after buying an additional 576 shares in the last quarter. Qube Research & Technologies Ltd purchased a new position in Yum China in the 2nd quarter valued at about $14,659,000. Finally, Alliancebernstein L.P. boosted its holdings in Yum China by 13.1% in the 2nd quarter. Alliancebernstein L.P. now owns 5,871,382 shares of the company's stock worth $262,509,000 after buying an additional 677,928 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Insider Buying and Selling

In related news, insider Duoduo (Howard) Huang sold 24,096 shares of Yum China stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $47.08, for a total transaction of $1,134,439.68. Following the transaction, the insider owned 7,589 shares in the company, valued at approximately $357,290.12. This trade represents a 76.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jeff Kuai sold 14,586 shares of the business's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $47.72, for a total value of $696,043.92. Following the transaction, the insider directly owned 63,541 shares in the company, valued at $3,032,176.52. This trade represents a 18.67% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.44% of the stock is owned by corporate insiders.

Yum China Stock Performance

NYSE:YUMC opened at $48.55 on Wednesday. The company has a market cap of $16.63 billion, a P/E ratio of 17.78, a P/E/G ratio of 1.29 and a beta of 0.09. Yum China has a twelve month low of $40.15 and a twelve month high of $58.39. The company's 50-day moving average price is $44.69 and its 200-day moving average price is $47.80. 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 announced its quarterly earnings data 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. The company had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.05 billion. Yum China had a net margin of 7.84% and a return on equity of 15.82%. Yum China's revenue was up 12.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.58 EPS. On average, sell-side analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Thursday, August 27th. Yum China's payout ratio is currently 42.49%.

Wall Street Analysts Forecast Growth

YUMC has been the subject of several research reports. Wall Street Zen upgraded Yum China from a "hold" rating to a "buy" rating in a research note on Monday, August 17th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $59.00 price target on shares of Yum China in a research note on Thursday, July 30th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Yum China in a research report on Friday. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $59.21.

Yum China 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.

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