Yum China $YUMC Stock Position Raised by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its Yum China stake to 21,957,111 shares (about 6.08%), adding 1,787,450 shares in Q4 and valuing the position at roughly $1.04 billion.
• Insiders have been net sellers: CEO Joey Wat sold 104,000 shares (~$5.74M) and insiders disposed of 135,117 shares (~$7.48M) in the last 90 days, leaving insider ownership at 0.40%.
• Yum China reported quarterly EPS of $0.87 (in line with estimates) and revenue of $3.27B (above estimates), and declared a quarterly dividend of $0.29 per share (annualized yield ~2.4%).

Principal Financial Group Inc. lifted its position in Yum China (NYSE:YUMC - Free Report) by 8.9% in the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 21,957,111 shares of the company's stock after acquiring an additional 1,787,450 shares during the quarter. Principal Financial Group Inc. owned approximately 6.08% of Yum China worth $1,039,945,000 as of its most recent filing with the SEC.

Other large investors have also recently added to or reduced their stakes in the company. Duncker Streett & Co. Inc. acquired a new position in Yum China in the 4th quarter valued at approximately $26,000. Jackson Grant Investment Advisers Inc. increased its stake in Yum China by 526.3% in the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company's stock valued at $26,000 after buying an additional 500 shares during the period. Stone House Investment Management LLC increased its stake in Yum China by 106.2% in the 4th quarter. Stone House Investment Management LLC now owns 629 shares of the company's stock valued at $30,000 after buying an additional 324 shares during the period. Quent Capital LLC acquired a new position in Yum China in the 3rd quarter valued at approximately $28,000. Finally, Miller Global Investments LLC acquired a new position in Yum China in the 4th quarter valued at approximately $41,000. Institutional investors and hedge funds own 85.58% of the company's stock.

Insider Transactions at Yum China

In other news, CEO Joey Wat sold 104,000 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $55.18, for a total transaction of $5,738,720.00. Following the transaction, the chief executive officer owned 433,306 shares in the company, valued at $23,909,825.08. This represents a 19.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Jerry Ding sold 3,000 shares of the stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $55.14, for a total transaction of $165,420.00. Following the transaction, the insider owned 915 shares in the company, valued at approximately $50,453.10. This trade represents a 76.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 135,117 shares of company stock worth $7,479,590 in the last 90 days. 0.40% of the stock is owned by insiders.

Yum China Stock Performance

Shares of YUMC opened at $47.80 on Tuesday. The company's fifty day moving average is $51.00 and its 200-day moving average is $49.17. Yum China has a 12 month low of $41.69 and a 12 month high of $58.39. The firm has a market cap of $16.79 billion, a price-to-earnings ratio of 18.31, a price-to-earnings-growth ratio of 1.38 and a beta of 0.13. The company has a quick ratio of 0.85, a current ratio of 1.05 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.87 EPS for the quarter, hitting the consensus estimate of $0.87. Yum China had a net margin of 7.83% and a return on equity of 14.98%. The company had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.21 billion. During the same quarter in the prior year, the business posted $0.77 EPS. Yum China's quarterly revenue was up 9.7% on a year-over-year basis. Equities analysts expect that Yum China will post 2.92 EPS for the current fiscal year.

Yum China Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 27th will be paid a dividend of $0.29 per share. The ex-dividend date is Wednesday, May 27th. This represents a $1.16 annualized dividend and a dividend yield of 2.4%. Yum China's dividend payout ratio is 44.44%.

Analysts Set New Price Targets

YUMC has been the topic of several research reports. The Goldman Sachs Group reiterated a "buy" rating and issued a $58.50 price objective on shares of Yum China in a research note on Wednesday, February 4th. Jefferies Financial Group reiterated a "buy" rating and issued a $63.64 price objective on shares of Yum China in a research note on Thursday, February 5th. Weiss Ratings upgraded shares of Yum China from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday. Finally, Wall Street Zen lowered shares of Yum China from a "buy" rating to a "hold" rating in a research note on Saturday. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $59.05.

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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