Yum China (YUMC) Lowered to “Sell” at Zacks Investment Research
Zacks Investment Research cut shares of Yum China (NYSE:YUMC) from a hold rating to a sell rating in a report issued on Tuesday morning.
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. “
A number of other brokerages also recently weighed in on YUMC. Morgan Stanley reiterated an overweight rating and issued a $45.00 price target on shares of Yum China in a report on Monday, October 9th. Instinet reiterated a buy rating and issued a $51.60 price target (up from $51.50) on shares of Yum China in a report on Monday, October 9th. Nomura began coverage on Yum China in a report on Monday, October 9th. They issued a buy rating and a $51.60 price target for the company. Bank of America restated a neutral rating and set a $45.10 price objective (up previously from $41.60) on shares of Yum China in a research report on Friday, October 6th. Finally, Deutsche Bank upgraded Yum China from a hold rating to a buy rating and set a $45.30 price objective for the company in a research report on Friday, October 6th. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and eight have assigned a buy rating to the stock. Yum China currently has a consensus rating of Hold and an average target price of $43.38.
Yum China (NYSE:YUMC) last issued its quarterly earnings results on Thursday, October 5th. The company reported $0.52 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.56 by ($0.04). Yum China had a net margin of 8.43% and a return on equity of 21.35%. The firm had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $1.98 billion. During the same quarter last year, the firm posted $0.52 earnings per share. Yum China’s revenue was up 8.2% compared to the same quarter last year. research analysts forecast that Yum China will post 1.44 EPS for the current year.
The business also recently disclosed a special dividend, which will be paid on Thursday, December 21st. Investors of record on Thursday, November 30th will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Wednesday, November 29th. Yum China’s dividend payout ratio is currently 6.80%.
In other Yum China news, insider Danny Tan sold 2,124 shares of the business’s stock in a transaction on Monday, October 9th. The stock was sold at an average price of $41.84, for a total transaction of $88,868.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Angela Ai sold 17,678 shares of the business’s stock in a transaction on Thursday, October 12th. The stock was sold at an average price of $43.05, for a total value of $761,037.90. The disclosure for this sale can be found here. Insiders own 0.23% of the company’s stock.
Hedge funds have recently made changes to their positions in the business. San Francisco Sentry Investment Group CA acquired a new position in Yum China during the 2nd quarter worth $157,000. Nippon Life Insurance Co. acquired a new position in Yum China during the 2nd quarter worth $162,000. Tower Research Capital LLC TRC acquired a new position in Yum China during the 2nd quarter worth $176,000. Goelzer Investment Management Inc. acquired a new position in Yum China during the 3rd quarter worth $201,000. Finally, Taurus Asset Management LLC acquired a new position in Yum China during the 2nd quarter worth $212,000. Institutional investors own 86.57% of the company’s stock.
Yum China Company Profile
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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