Hsbc Holdings PLC Sells 247,574 Shares of Yum China $YUMC

Key Points

• HSBC reduced its Yum China stake by 14.1%, selling 247,574 shares and retaining 1.51 million shares worth approximately $61.6 million. Institutional investors collectively own 85.58% of the company.
• Yum China exceeded quarterly expectations, reporting adjusted EPS of $0.70 versus $0.67 expected and revenue of $3.14 billion, up 12.6% year over year.
• The company declared a quarterly dividend of $0.29 per share, equivalent to a 2.7% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $59.21.

Hsbc Holdings PLC cut its stake in Yum China (NYSE:YUMC - Free Report) by 14.1% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,511,774 shares of the company's stock after selling 247,574 shares during the period. Hsbc Holdings PLC owned 0.44% of Yum China worth $61,637,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the company. Principal Financial Group Inc. raised its position in shares of Yum China by 3.0% in the 1st quarter. Principal Financial Group Inc. now owns 22,606,740 shares of the company's stock worth $1,111,135,000 after acquiring an additional 649,629 shares in the last quarter. Royal Bank of Canada boosted its position in shares of Yum China by 1.5% during the fourth quarter. Royal Bank of Canada now owns 11,135,203 shares of the company's stock valued at $531,593,000 after purchasing an additional 167,868 shares in the last quarter. Dodge & Cox grew its stake in Yum China by 0.4% in the fourth quarter. Dodge & Cox now owns 8,553,962 shares of the company's stock worth $408,366,000 after purchasing an additional 33,100 shares during the period. Mondrian Investment Partners LTD grew its stake in Yum China by 112.0% in the fourth quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company's stock worth $374,959,000 after purchasing an additional 4,148,966 shares during the period. Finally, W1M Asset Management Ltd bought a new position in Yum China in the second quarter worth $320,227,000. 85.58% of the stock is owned by institutional investors.

Yum China Stock Down 0.0%

Shares of NYSE:YUMC opened at $43.59 on Tuesday. 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 stock has a fifty day simple moving average of $45.24 and a two-hundred day simple moving average of $47.09. Yum China has a 12-month low of $40.15 and a 12-month high of $58.39. The stock has a market capitalization of $14.93 billion, a price-to-earnings ratio of 15.97, a PEG ratio of 1.15 and a beta of 0.08.

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, 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 firm had revenue of $3.14 billion for the quarter, compared to analysts' expectations of $3.05 billion. During the same period in the prior year, the firm posted $0.58 earnings per share. The company's quarterly revenue was up 12.6% on a year-over-year basis. On average, research analysts anticipate that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Thursday, August 27th. Yum China's dividend payout ratio is 42.49%.

Insider Transactions at Yum China

In other news, insider Duoduo (Howard) Huang sold 24,096 shares of the company's stock in a transaction that occurred 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 transaction, the insider owned 7,589 shares in the company, valued at approximately $357,290.12. This represents a 76.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Jeff Kuai sold 14,586 shares of the stock in a transaction that occurred on 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. The trade was a 18.67% decrease in their position. The SEC filing for this sale provides additional information. 0.44% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several equities analysts have commented on the company. The Goldman Sachs Group reissued a "buy" rating and set a $59.00 price objective on shares of Yum China in a research report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Yum China in a research report on Friday, August 21st. Finally, Wall Street Zen upgraded shares of Yum China from a "hold" rating to a "buy" rating in a research note on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price 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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