Analysts Set Yum China (NYSE:YUMC) Price Target at $59.05

Yum China (NYSE:YUMC) has received a consensus rating of “Moderate Buy” from the four research firms that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $59.0467.

Several brokerages have commented on YUMC. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a report on Wednesday, January 21st. CLSA reaffirmed an “outperform” rating and issued a $55.00 price objective on shares of Yum China in a research note on Tuesday, November 25th. Jefferies Financial Group reissued a “buy” rating and set a $63.64 target price on shares of Yum China in a research report on Thursday, February 5th. The Goldman Sachs Group restated a “buy” rating and set a $58.50 price target on shares of Yum China in a report on Wednesday, February 4th. Finally, Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th.

Yum China Stock Up 3.3%

NYSE:YUMC opened at $55.42 on Tuesday. Yum China has a one year low of $41.00 and a one year high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15. The company has a market cap of $20.03 billion, a PE ratio of 22.08, a P/E/G ratio of 1.57 and a beta of 0.14. The firm’s 50 day simple moving average is $49.48 and its 200 day simple moving average is $46.49.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. The firm 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%. The company’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.30 earnings per share. On average, research analysts anticipate that Yum China will post 2.54 earnings per share for the current year.

Yum China Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be issued a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Wednesday, March 4th. This is an increase from Yum China’s previous quarterly dividend of $0.24. Yum China’s dividend payout ratio (DPR) is 38.25%.

Yum China announced that its Board of Directors has approved a stock repurchase plan on Friday, December 12th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Yum China

In related news, insider Jerry Ding sold 3,000 shares of the business’s stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $55.14, for a total value of $165,420.00. Following the completion of the sale, the insider directly owned 915 shares of the company’s stock, valued at $50,453.10. The trade was a 76.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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 value 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. The trade was a 14.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 25,855 shares of company stock valued at $1,306,804. 0.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Yum China

A number of institutional investors have recently modified their holdings of the company. Jackson Grant Investment Advisers Inc. grew its position in Yum China by 526.3% in the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock valued at $26,000 after purchasing an additional 500 shares during the period. Duncker Streett & Co. Inc. bought a new position in shares of Yum China in the fourth quarter valued at $26,000. Elyxium Wealth LLC acquired a new position in shares of Yum China during the fourth quarter valued at about $27,000. Quent Capital LLC bought a new stake in shares of Yum China during the third quarter worth about $28,000. Finally, Cresta Advisors Ltd. bought a new stake in shares of Yum China during the fourth quarter worth about $28,000. 85.58% of the stock is owned by institutional investors and hedge funds.

About Yum China

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.