Yum China (NYSE:YUMC) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Yum China from a "buy" to a "hold," though the consensus remains a Moderate Buy with a $59.05 average price target (three analysts Buy, one Hold).
• Yum China reported Q1 EPS of $0.87 (matching estimates) and revenue of $3.27 billion (beating estimates), with revenue up 9.7% year‑over‑year and analysts projecting about $2.92 EPS for the fiscal year.
• Insiders have been net sellers recently—135,117 shares worth $7.48 million sold in the past 90 days (insiders now own 0.40%)—while institutional ownership is high at 85.58%, including large new or increased stakes by Norges Bank, Mondrian and others.

Yum China (NYSE:YUMC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

YUMC has been the topic of several other reports. Jefferies Financial Group reiterated a "buy" rating and set a $63.64 target price on shares of Yum China in a research note on Thursday, February 5th. Weiss Ratings reiterated a "hold (c)" rating on shares of Yum China in a research note on Wednesday, January 21st. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $58.50 target price on shares of Yum China in a research note on Wednesday, February 4th. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $59.05.

Yum China Stock Performance

Shares of YUMC opened at $48.82 on Friday. The business's fifty day simple moving average is $51.00 and its two-hundred day simple moving average is $49.09. The company has a current ratio of 1.05, a quick ratio of 0.85 and a debt-to-equity ratio of 0.01. Yum China has a 12 month low of $41.69 and a 12 month high of $58.39. The company has a market cap of $17.15 billion, a price-to-earnings ratio of 18.70, a P/E/G ratio of 1.37 and a beta of 0.13.

Yum China (NYSE:YUMC - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $0.87 EPS for the quarter, meeting the consensus estimate of $0.87. Yum China had a return on equity of 14.98% and a net margin of 7.83%.The business had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.21 billion. During the same period last year, the business posted $0.77 EPS. The company's revenue was up 9.7% compared to the same quarter last year. Research analysts anticipate that Yum China will post 2.92 earnings per share for the current fiscal year.

Insider Activity

In other news, 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 directly owned 915 shares of the company's stock, valued at $50,453.10. This represents a 76.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Xueling Lu sold 23,504 shares of the stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total value of $1,312,463.36. Following the transaction, the insider directly owned 9,042 shares in the company, valued at $504,905.28. The trade was a 72.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 135,117 shares of company stock valued at $7,479,590 in the last ninety days. 0.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Yum China

Hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank bought a new position in Yum China in the 4th quarter worth $280,656,000. Mondrian Investment Partners LTD raised 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 worth $374,959,000 after purchasing an additional 4,148,966 shares during the period. Principal Financial Group Inc. raised its holdings in Yum China by 14.8% in the 3rd quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company's stock worth $883,687,000 after purchasing an additional 2,604,480 shares during the period. Hsbc Holdings PLC raised its holdings in Yum China by 132.4% in the 1st quarter. Hsbc Holdings PLC now owns 1,759,348 shares of the company's stock worth $85,827,000 after purchasing an additional 1,002,313 shares during the period. Finally, Temasek Holdings Private Ltd raised its holdings in Yum China by 25.1% in the 3rd quarter. Temasek Holdings Private Ltd now owns 4,654,717 shares of the company's stock worth $199,780,000 after purchasing an additional 932,859 shares during the period. 85.58% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.