Hsbc Holdings PLC Takes Position in Yum China $YUMC

Key Points

• Hsbc Holdings PLC acquired 1.51 million Yum China shares worth approximately $61.6 million, representing about 0.44% of the company. Institutional investors collectively own 85.58% of Yum China.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $59.21, compared with the stock’s reported opening price of $47.17.
• Yum China exceeded quarterly expectations, reporting $0.70 in earnings per share and $3.14 billion in revenue, while also declaring a quarterly dividend of $0.29 per share, yielding approximately 2.5% annually.

Hsbc Holdings PLC bought a new stake in shares of Yum China (NYSE:YUMC - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 1,511,774 shares of the company's stock, valued at approximately $61,637,000. Hsbc Holdings PLC owned approximately 0.44% of Yum China at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. W1M Asset Management Ltd acquired a new position in shares of Yum China during the second quarter worth about $320,227,000. Norges Bank acquired a new stake in shares of Yum China in the fourth quarter valued at about $280,656,000. Mondrian Investment Partners LTD grew its stake in shares of Yum China by 112.0% in the fourth quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company's stock valued at $374,959,000 after buying an additional 4,148,966 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Yum China during the 2nd quarter valued at about $146,826,000. Finally, Legal & General Group Plc purchased a new stake in shares of Yum China during the 2nd quarter valued at about $76,294,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. The Goldman Sachs Group restated a "buy" rating and issued a $59.00 price target on shares of Yum China in a report on Thursday, July 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Yum China in a research note on Friday, August 21st. 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 given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $59.21.

Yum China Stock Down 2.9%

Shares of NYSE YUMC opened at $47.17 on Thursday. 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 1 year low of $40.15 and a 1 year high of $58.39. The stock's 50-day simple moving average is $44.77 and its 200-day simple moving average is $47.74. The firm has a market cap of $16.15 billion, a price-to-earnings ratio of 17.28, a PEG ratio of 1.28 and a beta of 0.09.

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

Yum China Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Thursday, August 27th. Yum China's dividend payout ratio is 42.49%.

Insider Activity at Yum China

In related news, 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 directly 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jeff Kuai sold 14,586 shares of the company's stock in a transaction 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 completion of the sale, the insider directly owned 63,541 shares in the company, valued at $3,032,176.52. This represents a 18.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.44% of the company's stock.

Yum China Company 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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