Yum China $YUMC Shares Sold by Wellington Management Group LLP

Key Points

• Wellington Management reduced its Yum China stake by 9.6% in the second quarter, selling 275,655 shares and retaining 2.61 million shares worth approximately $106.5 million. Institutional investors and hedge funds collectively own 85.58% of the company.
• Yum China exceeded quarterly expectations, reporting $0.70 in EPS on $3.14 billion in revenue, with revenue rising 12.6% year over year. The company also declared a quarterly dividend of $0.29, equivalent to a 2.6% annualized yield.
• Analyst sentiment remains favorable, with three Buy ratings and one Hold rating producing a consensus “Moderate Buy” and an average price target of $59.21, above the reported share price of $44.88.

Wellington Management Group LLP trimmed its stake in shares of Yum China (NYSE:YUMC - Free Report) by 9.6% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,608,892 shares of the company's stock after selling 275,655 shares during the quarter. Wellington Management Group LLP owned about 0.76% of Yum China worth $106,532,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently made changes to their positions in YUMC. Main Street Group LTD acquired a new position in shares of Yum China during the first quarter valued at approximately $26,000. Elyxium Wealth LLC acquired a new stake in Yum China in the fourth quarter worth approximately $27,000. Ascentis Independent Advisors bought a new position in Yum China during the 1st quarter valued at $27,000. Cresta Advisors Ltd. acquired a new position in shares of Yum China during the 4th quarter valued at $28,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Yum China during the 2nd quarter valued at $29,000. 85.58% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Yum China news, insider Jeff Kuai sold 14,586 shares of the business's 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 sale, the insider owned 63,541 shares in the company, valued at approximately $3,032,176.52. The trade was a 18.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Duoduo (Howard) Huang sold 24,096 shares of the company's stock in a transaction dated 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 directly owned 7,589 shares of the company's stock, valued at $357,290.12. This represents a 76.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.44% of the stock is currently owned by insiders.

Yum China Price Performance

Shares of NYSE:YUMC opened at $44.88 on Wednesday. The company has a market capitalization of $15.37 billion, a PE ratio of 16.44, a price-to-earnings-growth ratio of 1.17 and a beta of 0.09. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.78 and a current ratio of 0.96. The stock has a fifty day moving average of $44.99 and a 200-day moving average of $47.39. Yum China has a one year low of $40.15 and a one year high of $58.39.

Yum China (NYSE:YUMC - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.67 by $0.03. The business had revenue of $3.14 billion for 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%.The company's quarterly revenue was up 12.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.58 EPS. As a group, equities analysts anticipate that Yum China will post 2.95 EPS for the current fiscal year.

Yum China Announces Dividend

The business also recently declared 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 2.6%. Yum China's dividend payout ratio (DPR) is currently 42.49%.

Wall Street Analysts Forecast Growth

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

Yum China Company Profile

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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