Yum China (NYSE:YUMC) Stock Breaks Above 200-Day Moving Average - Time to Sell?

Key Points

• Yum China shares broke above their 200-day moving average, reaching $47.23 and last trading near $47.11, up 2.9%.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $59.21, although one firm downgraded the stock to “Hold.”
• Institutional ownership is substantial at 85.58%, while two company insiders recently sold shares, reducing their individual holdings.

Yum China (NYSE:YUMC - Get Free Report) passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $46.82 and traded as high as $47.23. Yum China shares last traded at $47.1050, with a volume of 2,541,519 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on YUMC shares. Wall Street Zen lowered Yum China from a "buy" rating to a "hold" rating in a research report on Saturday, October 10th. Weiss Ratings reissued a "hold (c)" rating on shares of Yum China in a report on Friday, August 21st. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $59.00 price objective on shares of Yum China in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $59.21.

Yum China Trading Up 2.9%

The company has a debt-to-equity ratio of 0.01, a current ratio of 0.96 and a quick ratio of 0.78. The company has a market capitalization of $16.13 billion, a price-to-earnings ratio of 17.25, a price-to-earnings-growth ratio of 1.17 and a beta of 0.07. The business's 50 day simple moving average is $43.34 and its 200 day simple moving average is $46.82.

Insider Transactions at Yum China

In other Yum China news, insider Duoduo (Howard) Huang sold 24,096 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $47.08, for a total transaction of $1,134,439.68. Following the completion of 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jeff Kuai sold 14,586 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The shares were 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 approximately $3,032,176.52. This 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.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. W1M Asset Management Ltd purchased a new stake in Yum China in the 2nd quarter valued at approximately $320,227,000. Bank of New York Mellon Corp acquired a new position in Yum China during the 2nd quarter worth approximately $146,826,000. Bank of America Corp DE acquired a new position in Yum China during the 2nd quarter worth approximately $96,255,000. Legal & General Group Plc purchased a new position in shares of Yum China during the 2nd quarter worth approximately $76,294,000. Finally, Hsbc Holdings PLC purchased a new position in shares of Yum China during the 2nd quarter worth approximately $61,637,000. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

About Yum China

Yum China Holdings, Inc is a restaurant company focused on operating and developing quick-service and casual-dining brands in China. Headquartered in Shanghai, the company serves customers across mainland China through a large network of company-owned and franchised restaurants, supported by digital ordering, delivery and loyalty platforms.

Its principal brands include KFC, Pizza Hut and Taco Bell, for which Yum China holds the exclusive rights to operate and franchise restaurants in China.

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