North of South Capital LLP Purchases 439,619 Shares of Yum China $YUMC

Key Points

• North of South Capital increased its Yum China stake by 28.6%, buying 439,619 shares to hold 1,976,100 shares, worth about $81.2 million at quarter-end.
• Yum China reported quarterly EPS of $0.91, beating the $0.88 consensus, while revenue of $3.48 billion fell short of estimates; revenue rose 8.5% year over year.
• Analysts’ consensus rating was Moderate Buy, with a $59.21 average price target. The company also announced a quarterly dividend of $0.29 per share, equivalent to a 2.3% annualized yield.

North of South Capital LLP raised its position in Yum China (NYSE:YUMC - Free Report) by 28.6% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,976,100 shares of the company's stock after buying an additional 439,619 shares during the quarter. Yum China comprises about 5.6% of North of South Capital LLP's holdings, making the stock its 7th largest position. North of South Capital LLP owned about 0.59% of Yum China worth $81,218,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in YUMC. Bell Investment Advisors Inc grew its stake in shares of Yum China by 55.5% during the 3rd quarter. Bell Investment Advisors Inc now owns 726 shares of the company's stock worth $30,000 after acquiring an additional 259 shares during the period. Kestra Advisory Services LLC raised its stake in Yum China by 3.5% in the 3rd quarter. Kestra Advisory Services LLC now owns 7,714 shares of the company's stock valued at $317,000 after acquiring an additional 259 shares during the period. Eastern Bank raised its stake in Yum China by 12.6% in the 2nd quarter. Eastern Bank now owns 2,984 shares of the company's stock valued at $122,000 after acquiring an additional 335 shares during the period. Ethic Inc. lifted its holdings in Yum China by 3.4% during the third quarter. Ethic Inc. now owns 10,352 shares of the company's stock valued at $425,000 after purchasing an additional 345 shares during the last quarter. Finally, Lido Advisors LLC lifted its holdings in Yum China by 6.7% during the first quarter. Lido Advisors LLC now owns 7,214 shares of the company's stock valued at $352,000 after purchasing an additional 451 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Insider Buying and Selling

In other Yum China news, insider Pingping Liu sold 1,062 shares of the firm's stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $50.65, for a total value of $53,790.30. Following the completion of the transaction, the insider owned 22,573 shares in the company, valued at $1,143,322.45. This trade represents a 4.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Duoduo (Howard) Huang sold 24,096 shares of the firm'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 approximately $357,290.12. This represents a 76.05% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 37,351 shares of company stock worth $1,802,753. Company insiders own 0.44% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on YUMC. The Goldman Sachs Group reiterated a "buy" rating and set a $59.00 target price on shares of Yum China in a research report on Thursday, July 30th. Wall Street Zen lowered shares of Yum China from a "buy" rating to a "hold" rating in a research report on Saturday, October 10th. Finally, Weiss Ratings raised shares of Yum China from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, November 2nd. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $59.21.

Yum China Stock Performance

Shares of NYSE:YUMC traded up $1.53 during trading on Friday, hitting $50.74. 1,686,554 shares of the company were exchanged, compared to its average volume of 1,918,280. The company has a market cap of $17.09 billion, a PE ratio of 17.62, a P/E/G ratio of 1.28 and a beta of 0.06. The stock has a 50 day moving average of $44.00 and a 200 day moving average of $46.87. Yum China has a 52-week low of $39.72 and a 52-week high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.67 and a quick ratio of 0.55.

Yum China (NYSE:YUMC - Get Free Report) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.88 by $0.03. The firm had revenue of $3.48 billion during the quarter, compared to analyst estimates of $3.50 billion. Yum China had a return on equity of 16.48% and a net margin of 7.90%. The business's revenue for the quarter was up 8.5% on a year-over-year basis. During the same period last year, the company earned $0.76 earnings per share. As a group, equities research analysts predict that Yum China will post 2.95 EPS for the current year.

Yum China Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 22nd. Investors of record on Tuesday, December 1st will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $1.16 dividend on an annualized basis and a yield of 2.3%. Yum China's dividend payout ratio is 40.28%.

Yum China Profile

Yum China Holdings operates quick-service and casual-dining restaurants in China. Its portfolio includes KFC and Pizza Hut, along with local and regional brands such as Little Sheep and Huang Ji Huang. The company was separated from Yum! Brands in 2016 and became an independent, publicly traded company. Its restaurants serve a range of meals and beverages, including fried chicken, burgers, pizza, hot pot and other Chinese-style dishes, as well as coffee. Yum China also offers delivery and digital ordering services through its apps and other platforms.

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