HighTower Advisors LLC Buys 31,348 Shares of Yum China $YUMC

Key Points

• HighTower Advisors increased its Yum China stake by 41.9%, purchasing 31,348 shares during the second quarter to hold 106,166 shares valued at approximately $4.34 million. Institutional investors collectively own 85.58% of the company.
• Yum China reported quarterly EPS of $0.70 and revenue of $3.14 billion, exceeding analyst estimates, while revenue grew 12.6% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $59.21.
• The company declared a quarterly dividend of $0.29 per share, equivalent to an annualized $1.16 payout and a 2.7% yield; meanwhile, two insiders sold shares in August.

HighTower Advisors LLC boosted its stake in shares of Yum China (NYSE:YUMC - Free Report) by 41.9% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 106,166 shares of the company's stock after buying an additional 31,348 shares during the quarter. HighTower Advisors LLC's holdings in Yum China were worth $4,339,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in YUMC. Main Street Group LTD bought a new stake in shares of Yum China during the 1st quarter valued at about $26,000. Elyxium Wealth LLC bought a new position in shares of Yum China during the 4th quarter worth about $27,000. Ascentis Independent Advisors bought a new position in shares of Yum China during the 1st quarter worth about $27,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Yum China in the 2nd quarter valued at about $29,000. Finally, Aberdeen Wealth Management LLC bought a new stake in Yum China in the 2nd quarter valued at about $33,000. Institutional investors own 85.58% of the company's stock.

Wall Street Analysts Forecast Growth

YUMC has been the subject of a number of recent research reports. Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a research note on Friday, August 21st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $59.00 price objective on shares of Yum China in a research note on Thursday, July 30th. Finally, Wall Street Zen raised shares of Yum China from a "hold" rating to a "buy" rating in a research report on Monday, August 17th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Yum China currently has an average rating of "Moderate Buy" and an average target price of $59.21.

Yum China Price Performance

Yum China stock opened at $42.41 on Friday. The firm has a market capitalization of $14.52 billion, a P/E ratio of 15.53, a PEG ratio of 1.11 and a beta of 0.08. Yum China has a one year low of $40.15 and a one year high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.96 and a quick ratio of 0.78. The business has a fifty day moving average price of $45.34 and a 200-day moving average price of $46.81.

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

Yum China Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Thursday, August 27th. Yum China's dividend payout ratio (DPR) is currently 42.49%.

Insider Activity at Yum China

In other Yum China news, insider Jeff Kuai sold 14,586 shares of Yum China stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $47.72, for a total transaction of $696,043.92. Following the completion of the sale, the insider owned 63,541 shares of the company's stock, valued at $3,032,176.52. The trade was a 18.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Duoduo (Howard) Huang sold 24,096 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $47.08, for a total value of $1,134,439.68. Following the completion of the transaction, the insider owned 7,589 shares of the company's stock, valued at $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.

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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