Yum China Holdings Inc (YUMC) Downgraded by Zacks Investment Research
Zacks Investment Research lowered shares of Yum China Holdings Inc (NASDAQ:YUMC) from a hold rating to a sell rating in a research report sent to investors on Thursday.
According to Zacks, “Yum China Holdings, Inc. is a licensee of Yum! Brands primarily in mainland China. The company have rights to KFC, China’s quick-service restaurant concept, Pizza Hut, casual dining restaurant brand and Taco Bell. Yum China Holdings, Inc. is based in Shanghai, China. “
Other equities research analysts have also recently issued research reports about the stock. Oppenheimer Holdings, Inc. lifted their price target on shares of Yum China Holdings from $35.00 to $43.00 in a report on Thursday, July 6th. Goldman Sachs Group, Inc. (The) reaffirmed a neutral rating and issued a $35.90 price target (up previously from $33.10) on shares of Yum China Holdings in a report on Thursday, July 6th. Citigroup Inc. began coverage on shares of Yum China Holdings in a report on Monday, September 18th. They issued a buy rating and a $51.00 price target on the stock. Bank of America Corporation reaffirmed a neutral rating and issued a $41.60 price target on shares of Yum China Holdings in a report on Sunday, July 30th. Finally, Deutsche Bank AG cut shares of Yum China Holdings from a buy rating to a hold rating and lifted their price target for the stock from $34.72 to $36.61 in a report on Thursday, July 6th. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating and six have assigned a buy rating to the company. The company currently has an average rating of Hold and a consensus target price of $39.52.
Yum China Holdings (YUMC) opened at 40.82 on Thursday. The firm has a market cap of $15.69 billion and a P/E ratio of 30.01. The stock has a 50 day moving average price of $38.91 and a 200 day moving average price of $38.91. Yum China Holdings has a 52-week low of $23.79 and a 52-week high of $42.12.
Yum China Holdings (NASDAQ:YUMC) last posted its quarterly earnings results on Thursday, October 5th. The company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.04). The company had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $1.98 billion. Yum China Holdings had a return on equity of 16.35% and a net margin of 7.09%. The company’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same period last year, the firm posted $0.52 EPS. Equities analysts predict that Yum China Holdings will post $1.46 earnings per share for the current fiscal year.
Yum China Holdings announced that its Board of Directors has initiated a share repurchase plan on Thursday, October 5th that allows the company to buyback $550.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 3.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.
The firm also recently announced a special dividend, which will be paid on Thursday, December 21st. Shareholders of record on Thursday, November 30th will be issued a dividend of $0.10 per share. The ex-dividend date is Wednesday, November 29th.
In other Yum China Holdings news, insider Mark Chu sold 22,184 shares of the business’s stock in a transaction on Thursday, August 17th. The shares were sold at an average price of $37.72, for a total transaction of $836,780.48. Following the sale, the insider now owns 23,457 shares of the company’s stock, valued at approximately $884,798.04. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.
A number of hedge funds have recently modified their holdings of YUMC. BlackRock Inc. grew its position in shares of Yum China Holdings by 28.7% during the 2nd quarter. BlackRock Inc. now owns 27,306,495 shares of the company’s stock valued at $1,076,695,000 after purchasing an additional 6,087,048 shares in the last quarter. Comerica Securities Inc. purchased a new position in shares of Yum China Holdings during the 2nd quarter valued at $251,000. Ameriprise Financial Inc. grew its position in shares of Yum China Holdings by 40.9% during the 2nd quarter. Ameriprise Financial Inc. now owns 3,514,169 shares of the company’s stock valued at $138,564,000 after purchasing an additional 1,020,928 shares in the last quarter. Loomis Sayles & Co. L P grew its position in shares of Yum China Holdings by 0.3% during the 1st quarter. Loomis Sayles & Co. L P now owns 10,885,386 shares of the company’s stock valued at $296,083,000 after purchasing an additional 32,594 shares in the last quarter. Finally, Commonwealth Bank of Australia grew its position in shares of Yum China Holdings by 17.7% during the 2nd quarter. Commonwealth Bank of Australia now owns 29,956 shares of the company’s stock valued at $1,180,000 after purchasing an additional 4,500 shares in the last quarter.
About Yum China Holdings
Yum China Holdings, Inc is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts.
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