Yum China (NYSE:YUMC) Stock Rating Upgraded by Wall Street Zen
by Teresa Graham · The Cerbat GemYum China (NYSE:YUMC – Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Saturday.
Several other research analysts have also issued reports on the company. Jefferies Financial Group reaffirmed a “buy” rating and set a $63.64 target price on shares of Yum China in a research report on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st. The Goldman Sachs Group restated a “buy” rating and set a $58.50 price objective on shares of Yum China in a report on Wednesday. Finally, CLSA reiterated an “outperform” rating and issued a $55.00 target price on shares of Yum China in a research note on Tuesday, November 25th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $59.05.
Read Our Latest Report on Yum China
Yum China Trading Up 4.0%
NYSE YUMC opened at $57.87 on Friday. Yum China has a 52 week low of $41.00 and a 52 week high of $58.39. The company has a 50 day moving average price of $48.61 and a 200 day moving average price of $46.18. The company has a quick ratio of 1.15, a current ratio of 1.32 and a debt-to-equity ratio of 0.01. The firm has a market cap of $20.92 billion, a PE ratio of 23.06, a price-to-earnings-growth ratio of 1.65 and a beta of 0.13.
Yum China (NYSE:YUMC – Get Free Report) last announced its earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.05. The company had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.72 billion. Yum China had a net margin of 7.87% and a return on equity of 14.46%. Yum China’s revenue was up 8.8% compared to the same quarter last year. During the same period last year, the firm earned $0.30 earnings per share. As a group, sell-side analysts forecast that Yum China will post 2.54 EPS for the current fiscal year.
Yum China declared that its Board of Directors has initiated a stock repurchase program on Friday, December 12th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.
Insider Transactions at Yum China
In related news, insider Jeff Kuai sold 5,167 shares of the company’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $48.00, for a total value of $248,016.00. Following the sale, the insider owned 56,602 shares in the company, valued at $2,716,896. This represents a 8.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Warton Wang sold 8,187 shares of the stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $48.28, for a total transaction of $395,268.36. Following the completion of the transaction, the insider owned 46,847 shares in the company, valued at approximately $2,261,773.16. This trade represents a 14.88% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 21,242 shares of company stock worth $1,043,817. 0.40% of the stock is owned by company insiders.
Institutional Inflows and Outflows
A number of large investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. grew its position in shares of Yum China by 21.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 29,150,667 shares of the company’s stock valued at $1,303,326,000 after acquiring an additional 5,164,701 shares during the period. Norges Bank purchased a new position in Yum China during the second quarter worth approximately $201,814,000. Mondrian Investment Partners LTD acquired a new stake in Yum China in the third quarter valued at approximately $159,431,000. Principal Financial Group Inc. increased its position in shares of Yum China by 14.8% in the third quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock valued at $883,687,000 after buying an additional 2,604,480 shares in the last quarter. Finally, Carrhae Capital LLP acquired a new position in shares of Yum China during the 2nd quarter worth approximately $48,868,000. 85.58% of the stock is owned by institutional investors and hedge funds.
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.