W1M Asset Management Ltd Acquires New Holdings in Yum China $YUMC

Key Points

• W1M Asset Management acquired 7.84 million Yum China shares worth approximately $320.2 million, representing about 2.24% of the company and 2.9% of W1M’s portfolio. Institutional investors collectively own 85.58% of Yum China.
• Yum China exceeded quarterly expectations, reporting $0.70 in EPS versus a $0.67 consensus estimate and $3.14 billion in revenue, up 12.6% year over year. The stock was trading at $49.47, up 1.2%.
• The company declared a quarterly dividend of $0.29, equivalent to an annualized $1.16 payout and a 2.3% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $59.21.

W1M Asset Management Ltd 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 Form 13F filing with the SEC. The firm bought 7,838,137 shares of the company's stock, valued at approximately $320,227,000. Yum China accounts for approximately 2.9% of W1M Asset Management Ltd's holdings, making the stock its 19th largest position. W1M Asset Management Ltd owned approximately 2.24% of Yum China as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Yum China during the 4th quarter valued at $280,656,000. Mondrian Investment Partners LTD lifted its holdings in Yum China by 112.0% in the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company's stock valued at $374,959,000 after acquiring an additional 4,148,966 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Yum China during the 2nd quarter valued at about $146,826,000. Principal Financial Group Inc. grew its stake in shares of Yum China by 8.9% in the 4th quarter. Principal Financial Group Inc. now owns 21,957,111 shares of the company's stock worth $1,039,945,000 after purchasing an additional 1,787,450 shares during the last quarter. Finally, Alberta Investment Management Corp acquired a new stake in Yum China during the second quarter valued at approximately $53,131,000. Institutional investors own 85.58% of the company's stock.

Yum China Trading Up 1.2%

NYSE YUMC opened at $49.47 on Friday. The firm's 50 day moving average price is $44.50 and its two-hundred day moving average price is $47.87. 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 twelve month low of $40.15 and a twelve month high of $58.39. The stock has a market cap of $16.94 billion, a price-to-earnings ratio of 18.12, a PEG ratio of 1.30 and a beta of 0.09.

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, topping the consensus estimate of $0.67 by $0.03. The business had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.05 billion. Yum China had a return on equity of 15.82% and a net margin of 7.84%.Yum China's revenue was up 12.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.58 earnings per share. Equities analysts anticipate that Yum China will post 2.95 EPS for the current year.

Yum China Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be given a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Thursday, August 27th. Yum China's dividend payout ratio is 42.49%.

Insider Activity at Yum China

In other Yum China news, insider Duoduo (Howard) Huang sold 24,096 shares of the business'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 transaction, the insider owned 7,589 shares in the company, valued at $357,290.12. The trade was a 76.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Jeff Kuai sold 14,586 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $47.72, for a total value of $696,043.92. Following the sale, the insider directly owned 63,541 shares of the company's stock, valued at $3,032,176.52. This trade represents a 18.67% 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.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. The Goldman Sachs Group restated a "buy" rating and issued a $59.00 price target on shares of Yum China in a research report on Thursday, July 30th. Weiss Ratings cut Yum China from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, May 26th. Finally, Wall Street Zen raised Yum China from a "hold" rating to a "buy" rating in a research report on Monday, August 17th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $59.21.

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.

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