Nykredit A S Makes New Investment in Yum China $YUMC

Key Points

• Nykredit A/S purchased 154,671 Yum China shares during the second quarter, valued at approximately $6.31 million. Institutional investors collectively own 85.58% of the company.
• Yum China exceeded quarterly expectations, reporting $0.70 in earnings per share versus the $0.67 consensus and $3.14 billion in revenue, up 12.6% year over year. The company also paid a quarterly dividend of $0.29, implying a 2.8% annualized yield.
• Analyst sentiment remains favorable, with three Buy ratings and one Hold rating, producing a “Moderate Buy” consensus and an average price target of $59.21. Meanwhile, two company insiders sold shares, reducing their holdings substantially.

Nykredit A S purchased a new position in shares of Yum China (NYSE:YUMC - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 154,671 shares of the company's stock, valued at approximately $6,310,000.

A number of other large investors have also made changes to their positions in the company. Principal Financial Group Inc. raised its position in shares of Yum China by 3.0% during the first quarter. Principal Financial Group Inc. now owns 22,606,740 shares of the company's stock worth $1,111,135,000 after purchasing an additional 649,629 shares during the period. W1M Asset Management Ltd bought a new stake in shares of Yum China in the second quarter worth $320,227,000. Norges Bank bought a new stake in Yum China during the 4th quarter worth about $280,656,000. Bank of New York Mellon Corp bought a new stake in Yum China during the second quarter worth about $146,826,000. Finally, Bank of America Corp DE acquired a new stake in shares of Yum China in the 2nd quarter valued at approximately $96,255,000. Institutional investors own 85.58% of the company's stock.

Insider Buying and Selling at Yum China

In related news, insider Jeff Kuai sold 14,586 shares of the company's stock in a transaction on 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 directly owned 63,541 shares in the company, valued at $3,032,176.52. This represents a 18.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Duoduo (Howard) Huang sold 24,096 shares of Yum China stock in a transaction dated 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 completion of 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 position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.44% of the company's stock.

Yum China Stock Up 0.9%

Shares of NYSE YUMC opened at $41.48 on Tuesday. The stock has a market capitalization of $14.21 billion, a P/E ratio of 15.19, a PEG ratio of 1.08 and a beta of 0.08. The stock's fifty day moving average is $45.20 and its 200 day moving average is $46.19. Yum China has a 52 week low of $40.15 and a 52 week high of $58.39. 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 (NYSE:YUMC - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.67 by $0.03. The company had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.05 billion. Yum China had a net margin of 7.84% and a return on equity of 15.82%. The business's revenue for the quarter was up 12.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.58 EPS. Sell-side analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th were issued a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Thursday, August 27th. Yum China's dividend payout ratio (DPR) is currently 42.49%.

Analyst Upgrades and Downgrades

YUMC has been the topic of several research analyst reports. Wall Street Zen upgraded Yum China from a "hold" rating to a "buy" rating in a research note on Monday, August 17th. Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a research note on Friday, August 21st. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $59.00 price target on shares of Yum China in a research report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Yum China has an average rating of "Moderate Buy" and a consensus target price of $59.21.

About Yum China

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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