Yum China $YUMC Shares Sold by Squarepoint Ops LLC

Key Points

• Squarepoint Ops LLC cut its Yum China stake by 72.1% in the second quarter, selling 184,229 shares and retaining 71,406 shares valued at approximately $2.9 million. Institutional investors and hedge funds collectively own 85.58% of the company.
• Yum China reported quarterly EPS of $0.70, beating estimates by $0.03, while revenue reached $3.14 billion, up 12.6% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $59.21.
• The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a 2.7% yield. Two company insiders also recently sold shares, reducing their holdings.

Squarepoint Ops LLC lessened its position in Yum China (NYSE:YUMC - Free Report) by 72.1% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 71,406 shares of the company's stock after selling 184,229 shares during the period. Squarepoint Ops LLC's holdings in Yum China were worth $2,918,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Main Street Group LTD bought a new position in shares of Yum China in the first quarter worth $26,000. Ascentis Independent Advisors acquired a new stake in Yum China in the first quarter worth approximately $27,000. Elyxium Wealth LLC bought a new position in Yum China during the 4th quarter valued at $27,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Yum China during the 2nd quarter valued at $29,000. Finally, MBM Wealth Consultants LLC acquired a new position in shares of Yum China during the 1st quarter valued at $37,000. 85.58% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Yum China

In other Yum China news, 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 transaction, the insider directly owned 7,589 shares in the company, valued at approximately $357,290.12. The trade was a 76.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jeff Kuai sold 14,586 shares of the business's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total transaction of $696,043.92. Following the sale, the insider directly owned 63,541 shares in the company, valued at approximately $3,032,176.52. This trade represents a 18.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.44% of the company's stock.

Analyst Ratings Changes

Several analysts have recently weighed in on YUMC shares. Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a report on Friday, August 21st. Wall Street Zen raised shares of Yum China from a "hold" rating to a "buy" rating in a report on Monday, August 17th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $59.00 price objective on shares of Yum China in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $59.21.

Yum China Stock Performance

Shares of NYSE YUMC opened at $42.41 on Monday. The stock's fifty day simple moving average is $45.34 and its 200 day simple moving average is $46.75. The stock has a market capitalization of $14.52 billion, a price-to-earnings ratio of 15.53, a PEG ratio of 1.11 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. 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 announced 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 business had revenue of $3.14 billion during the quarter, compared to the consensus estimate 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 period in the prior year, the business posted $0.58 earnings per share. As a group, sell-side analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Announces Dividend

The company also recently disclosed 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 of this dividend is Thursday, August 27th. This represents a $1.16 dividend on an annualized basis and a yield of 2.7%. Yum China's dividend payout ratio (DPR) is currently 42.49%.

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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