Yum China (NYSE:YUMC) Lowered to “Hold” Rating by StockNews.com

StockNews.com downgraded shares of Yum China (NYSE:YUMC) from a buy rating to a hold rating in a research note issued to investors on Friday.

A number of other analysts have also recently commented on the stock. JPMorgan Chase & Co. raised shares of Yum China from a “neutral” rating to an “overweight” rating and upped their price target for the company from $35.50 to $60.00 in a research report on Tuesday, November 5th. Citigroup raised shares of Yum China to a “strong-buy” rating in a research report on Monday, September 30th. One analyst has rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, Yum China currently has an average rating of “Buy” and a consensus price target of $49.57.

Yum China Price Performance

Shares of NYSE:YUMC opened at $46.03 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.15 and a current ratio of 1.29. Yum China has a 52 week low of $28.50 and a 52 week high of $52.00. The firm has a market cap of $17.48 billion, a PE ratio of 20.37, a price-to-earnings-growth ratio of 1.34 and a beta of 0.35. The firm’s fifty day moving average is $46.94 and its 200-day moving average is $41.28.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Monday, November 4th. The company reported $0.77 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.09. Yum China had a return on equity of 13.39% and a net margin of 7.97%. The firm had revenue of $3.07 billion for the quarter, compared to analyst estimates of $3.03 billion. During the same quarter in the previous year, the company posted $0.59 EPS. The business’s revenue was up 5.4% on a year-over-year basis. Sell-side analysts predict that Yum China will post 2.33 earnings per share for the current year.

Yum China Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 17th. Stockholders of record on Tuesday, November 26th were given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.39%. The ex-dividend date was Tuesday, November 26th. Yum China’s payout ratio is 28.32%.

Insider Activity at Yum China

In related news, insider Duoduo (Howard) Huang sold 6,377 shares of the firm’s stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $47.47, for a total value of $302,716.19. Following the transaction, the insider now owns 16,641 shares of the company’s stock, valued at approximately $789,948.27. This trade represents a 27.70 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.30% of the stock is currently owned by insiders.

Institutional Trading of Yum China

Several institutional investors and hedge funds have recently modified their holdings of YUMC. Dimensional Fund Advisors LP lifted its stake in Yum China by 1.1% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,815,869 shares of the company’s stock valued at $56,076,000 after acquiring an additional 19,776 shares in the last quarter. Sei Investments Co. boosted its holdings in Yum China by 17.4% during the second quarter. Sei Investments Co. now owns 312,376 shares of the company’s stock worth $9,634,000 after purchasing an additional 46,355 shares during the last quarter. Bank of Montreal Can grew its position in Yum China by 51.2% in the 2nd quarter. Bank of Montreal Can now owns 457,205 shares of the company’s stock worth $14,100,000 after purchasing an additional 154,782 shares in the last quarter. Marshall Wace LLP purchased a new stake in Yum China in the 2nd quarter valued at about $20,042,000. Finally, Squarepoint Ops LLC lifted its position in shares of Yum China by 1,100.7% during the 2nd quarter. Squarepoint Ops LLC now owns 632,616 shares of the company’s stock worth $19,510,000 after buying an additional 579,929 shares in the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

Yum China Company Profile

Yum China Holdings, Inc owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services.