Yum China (NYSE:YUMC) Sets New 1-Year Low – Time to Sell?

Shares of Yum China (NYSE:YUMC – Get Free Report) hit a new 52-week low during mid-day trading on Friday. The company traded as low as $40.00 and last traded at $40.13, with a volume of 154940 shares changing hands. The stock had previously closed at $40.96.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on YUMC. Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a report on Friday, August 21st. 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. Finally, Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a report on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Yum China currently has a consensus rating of “Moderate Buy” and an average target price of $59.21.

Check Out Our Latest Stock Report on YUMC

Yum China Stock Down 2.2%

The stock’s fifty day moving average price is $44.80 and its 200 day moving average price is $45.53. The company has a current ratio of 0.96, a quick ratio of 0.78 and a debt-to-equity ratio of 0.01. The stock has a market cap of $13.72 billion, a P/E ratio of 14.68, a price-to-earnings-growth ratio of 1.08 and a beta of 0.07.

Yum China (NYSE:YUMC – Get Free Report) last posted its quarterly earnings data 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 company had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.05 billion. Yum China had a net margin of 7.84% and a return on equity of 15.82%. The firm’s revenue was up 12.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.58 EPS. As a group, research analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th were issued a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Thursday, August 27th. Yum China’s dividend payout ratio is presently 42.49%.

Insider Activity

In related news, insider Jeff Kuai sold 14,586 shares of the firm’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 transaction, the insider directly owned 63,541 shares of the company’s stock, valued at approximately $3,032,176.52. This trade represents a 18.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Duoduo (Howard) Huang sold 24,096 shares of the business’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 value of $1,134,439.68. Following the completion of the sale, the insider owned 7,589 shares of the company’s stock, valued at $357,290.12. The trade was a 76.05% decrease in their position. The SEC filing for this sale provides additional information. 0.44% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Yum China

Institutional investors and hedge funds have recently made changes to their positions in the business. Envestnet Portfolio Solutions Inc. purchased a new position in shares of Yum China in the second quarter worth $523,000. Tidal Investments LLC purchased a new stake in Yum China during the 2nd quarter valued at $3,192,000. Integrated Wealth Concepts LLC boosted its position in Yum China by 24.4% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 5,719 shares of the company’s stock valued at $234,000 after buying an additional 1,120 shares during the period. IFP Advisors Inc grew its holdings in Yum China by 72.2% in the 2nd quarter. IFP Advisors Inc now owns 8,389 shares of the company’s stock worth $343,000 after acquiring an additional 3,516 shares during the last quarter. Finally, Baird Financial Group Inc. grew its holdings in Yum China by 6.9% in the 2nd quarter. Baird Financial Group Inc. now owns 14,551 shares of the company’s stock worth $595,000 after acquiring an additional 938 shares during the last quarter. Institutional investors own 85.58% of the company’s stock.

About Yum China

(Get Free Report)

Yum China Holdings, Inc is a restaurant company that operates and franchises quick-service and casual-dining restaurants in China. Its portfolio includes KFC, Pizza Hut, Taco Bell, Lavasa, Huang Ji Huang, COFFii&JOY and East Dawning, offering products such as fried chicken, pizza, Mexican-inspired food, coffee and traditional Chinese cuisine.

KFC China and Pizza Hut China are the company’s principal brands, serving customers through restaurants, delivery and digital ordering channels.

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