Tidal Investments LLC Takes $3.19 Million Position in Yum China $YUMC

Key Points

• Tidal Investments acquired 78,100 Yum China shares during the second quarter, establishing a position worth approximately $3.19 million. Institutional investors collectively own 85.58% of the company.
• Yum China exceeded quarterly expectations, reporting $0.70 in EPS versus the $0.67 consensus estimate and $3.14 billion in revenue, up 12.6% year over year.
• The company declared a quarterly dividend of $0.29, equivalent to $1.16 annually and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $59.21, above the reported $41.66 share price.

Tidal Investments LLC purchased a new position in shares of Yum China (NYSE:YUMC - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 78,100 shares of the company's stock, valued at approximately $3,192,000.

Several other hedge funds also recently added to or reduced their stakes in the company. Main Street Group LTD purchased a new position in shares of Yum China during the first quarter valued at approximately $26,000. Elyxium Wealth LLC purchased a new position in Yum China during the 4th quarter worth $27,000. Ascentis Independent Advisors bought a new stake in shares of Yum China in the first quarter valued at about $27,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Yum China in the 2nd quarter valued at about $29,000. Finally, Aberdeen Wealth Management LLC purchased a new stake in Yum China during the second quarter worth $33,000. 85.58% of the stock is currently owned by institutional investors.

Yum China Stock Performance

YUMC opened at $41.66 on Wednesday. The company has a market cap of $14.27 billion, a P/E ratio of 15.26, a price-to-earnings-growth ratio of 1.13 and a beta of 0.08. The company has a quick ratio of 0.78, a current ratio of 0.96 and a debt-to-equity ratio of 0.01. The firm's 50-day moving average price is $45.34 and its 200-day moving average price is $46.55. Yum China has a 52-week low of $40.15 and a 52-week high of $58.39.

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 net margin of 7.84% and a return on equity of 15.82%. The company had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.05 billion. During the same period last year, the business earned $0.58 EPS. 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 EPS for the current fiscal year.

Yum China Dividend Announcement

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

Insiders Place Their Bets

In other Yum China news, insider Jeff Kuai sold 14,586 shares of Yum China stock in a transaction dated 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 owned 63,541 shares of the company's stock, valued at approximately $3,032,176.52. The trade was a 18.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Duoduo (Howard) Huang sold 24,096 shares of Yum China stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $47.08, for a total transaction of $1,134,439.68. Following the sale, the insider owned 7,589 shares of the company's stock, valued at approximately $357,290.12. The trade was a 76.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.44% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on YUMC shares. The Goldman Sachs Group restated a "buy" rating and issued a $59.00 target price on shares of Yum China in a research note on Thursday, July 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Yum China in a report on Friday, August 21st. Finally, Wall Street Zen raised Yum China from a "hold" rating to a "buy" rating in a research report 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. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $59.21.

Yum China Profile

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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