Massachusetts Financial Services Co. MA Grows Position in Yum China $YUMC

Key Points

• Massachusetts Financial Services Co. MA increased its stake in Yum China by 5.0% in Q4 to 4,971,031 shares (about 1.38% of the company) valued at roughly $237.3 million.
• Insiders sold a total of 135,117 shares in the last three months (about $7.48 million), including CEO Joey Wat's sale of 104,000 shares; insiders now own roughly 0.40% of the stock.
• Earnings beat and a payout boost: Yum China topped Q results (EPS $0.40 vs. $0.35 expected; revenue +8.8% YoY), raised its quarterly dividend to $0.29 (annualized $1.16, ~2.3% yield), and carries a consensus analyst rating of "Moderate Buy" with a $59.05 target.

Massachusetts Financial Services Co. MA raised its position in shares of Yum China (NYSE:YUMC - Free Report) by 5.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,971,031 shares of the company's stock after buying an additional 236,736 shares during the quarter. Massachusetts Financial Services Co. MA owned about 1.38% of Yum China worth $237,317,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in YUMC. Mondrian Investment Partners LTD purchased a new position in Yum China during the 3rd quarter valued at approximately $159,431,000. Principal Financial Group Inc. grew its holdings in Yum China by 14.8% during the 3rd quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company's stock valued at $883,687,000 after buying an additional 2,604,480 shares in the last quarter. Temasek Holdings Private Ltd grew its holdings in Yum China by 25.1% during the 3rd quarter. Temasek Holdings Private Ltd now owns 4,654,717 shares of the company's stock valued at $199,780,000 after buying an additional 932,859 shares in the last quarter. Alliancebernstein L.P. grew its holdings in Yum China by 13.1% during the 2nd quarter. Alliancebernstein L.P. now owns 5,871,382 shares of the company's stock valued at $262,509,000 after buying an additional 677,928 shares in the last quarter. Finally, Franklin Resources Inc. boosted its holdings in shares of Yum China by 43.4% in the 3rd quarter. Franklin Resources Inc. now owns 2,220,546 shares of the company's stock worth $96,655,000 after purchasing an additional 672,090 shares during the period. Hedge funds and other institutional investors own 85.58% of the company's stock.

Insider Buying and Selling

In related news, insider Xueling Lu sold 23,504 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the completion of the sale, the insider directly owned 9,042 shares of the company's stock, valued at approximately $504,905.28. This trade represents a 72.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Joey Wat sold 104,000 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $55.18, for a total value of $5,738,720.00. Following the sale, the chief executive officer directly owned 433,306 shares of the company's stock, valued at $23,909,825.08. This represents a 19.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 135,117 shares of company stock valued at $7,479,590. Insiders own 0.40% of the company's stock.

Yum China Price Performance

Shares of Yum China stock opened at $49.76 on Monday. The stock has a market cap of $17.48 billion, a price-to-earnings ratio of 19.83, a price-to-earnings-growth ratio of 1.41 and a beta of 0.17. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.85 and a current ratio of 1.05. The stock has a 50 day moving average price of $52.76 and a 200-day moving average price of $48.61. Yum China has a one year low of $41.00 and a one year high of $58.39.

Yum China (NYSE:YUMC - Get Free Report) last announced its earnings results on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. Yum China had a return on equity of 14.65% and a net margin of 7.87%.The firm had revenue of $2.82 billion during the quarter, compared to analysts' expectations of $2.72 billion. During the same quarter in the previous year, the business earned $0.30 EPS. The company's quarterly revenue was up 8.8% on a year-over-year basis. Equities analysts expect that Yum China will post 2.54 EPS for the current year.

Yum China Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th were paid a dividend of $0.29 per share. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.3%. This is an increase from Yum China's previous quarterly dividend of $0.24. Yum China's dividend payout ratio is 46.22%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on YUMC shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Yum China in a report on Wednesday, January 21st. The Goldman Sachs Group reiterated a "buy" rating and issued a $58.50 target price on shares of Yum China in a report on Wednesday, February 4th. Jefferies Financial Group reiterated a "buy" rating and issued a $63.64 target price on shares of Yum China in a report on Thursday, February 5th. Finally, Wall Street Zen upgraded Yum China from a "hold" rating to a "buy" rating in a report on Saturday, February 7th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $59.05.

About Yum China

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.

Want to see what other hedge funds are holding YUMC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Yum China (NYSE:YUMC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.