Yum China (NYSE:YUMC) Trading Down 4.2% – Here’s What Happened

Shares of Yum China (NYSE:YUMCGet Free Report) fell 4.2% during trading on Thursday . The stock traded as low as $44.91 and last traded at $45.22. Approximately 653,233 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 1,607,718 shares. The stock had previously closed at $47.18.

Wall Street Analyst Weigh In

YUMC has been the subject of several recent analyst reports. Wall Street Zen upgraded Yum China from a “hold” rating to a “buy” rating in a research note on Monday, August 17th. Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a research note on Friday, August 21st. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $59.00 target price on shares of Yum China in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $59.21.

Get Our Latest Stock Report on YUMC

Yum China Stock Down 4.9%

The company has a market cap of $15.37 billion, a P/E ratio of 16.46, a PEG ratio of 1.28 and a beta of 0.09. 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 business’s 50 day moving average price is $44.77 and its 200-day moving average price is $47.74.

Yum China (NYSE:YUMCGet Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.67 by $0.03. Yum China had a return on equity of 15.82% and a net margin of 7.84%.The business had revenue of $3.14 billion for the quarter, compared to analyst estimates of $3.05 billion. During the same period in the prior year, the company earned $0.58 EPS. Yum China’s revenue for the quarter was up 12.6% on a year-over-year basis. On average, analysts anticipate that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Thursday, August 27th. Yum China’s dividend payout ratio is presently 42.49%.

Insiders Place Their Bets

In related news, insider Jeff Kuai sold 14,586 shares of the company’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total transaction of $696,043.92. Following the transaction, the insider owned 63,541 shares in the company, valued at $3,032,176.52. This represents a 18.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Duoduo (Howard) Huang sold 24,096 shares of the stock in a transaction dated 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 sale, the insider directly owned 7,589 shares in the company, valued at approximately $357,290.12. This represents a 76.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Yum China

A number of large investors have recently modified their holdings of YUMC. W1M Asset Management Ltd acquired a new position in shares of Yum China during the second quarter valued at $320,227,000. Norges Bank bought a new position in Yum China in the fourth quarter valued at about $280,656,000. Mondrian Investment Partners LTD increased its position in Yum China by 112.0% in the fourth 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. Bank of New York Mellon Corp acquired a new stake in Yum China in the second quarter worth about $146,826,000. Finally, Bank of America Corp DE bought a new stake in Yum China during the 2nd quarter worth about $96,255,000. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Yum China Company Profile

(Get Free Report)

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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