Teachers Retirement System of The State of Kentucky Acquires 40,600 Shares of Yum China $YUMC

Teachers Retirement System of The State of Kentucky lifted its stake in shares of Yum China (NYSE:YUMC) by 8.3% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 528,300 shares of the company’s stock after acquiring an additional 40,600 shares during the period. Teachers Retirement System of The State of Kentucky owned approximately 0.15% of Yum China worth $22,674,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of YUMC. Broad Peak Investment Advisers Pte Ltd bought a new position in Yum China in the third quarter valued at $27,679,000. Massachusetts Financial Services Co. MA boosted its stake in shares of Yum China by 14.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 4,734,295 shares of the company’s stock valued at $203,196,000 after purchasing an additional 591,251 shares during the period. Pictet North America Advisors SA increased its position in shares of Yum China by 4.9% in the third quarter. Pictet North America Advisors SA now owns 497,944 shares of the company’s stock valued at $21,299,000 after acquiring an additional 23,096 shares during the period. Principal Financial Group Inc. lifted its holdings in Yum China by 14.8% in the 3rd quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock worth $883,687,000 after buying an additional 2,604,480 shares during the period. Finally, Magellan Asset Management Ltd purchased a new position in shares of Yum China during the second quarter valued at approximately $18,482,000. 85.58% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, insider Xueling Lu sold 23,504 shares of Yum China stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the transaction, the insider directly owned 9,042 shares of the company’s stock, valued at $504,905.28. This trade represents a 72.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Joey Wat sold 104,000 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $55.18, for a total transaction of $5,738,720.00. Following the transaction, the chief executive officer owned 433,306 shares of the company’s stock, valued at approximately $23,909,825.08. This trade represents a 19.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 135,117 shares of company stock worth $7,479,590 in the last three months. Corporate insiders own 0.40% of the company’s stock.

Yum China Stock Down 2.2%

Shares of NYSE YUMC opened at $52.31 on Wednesday. The company has a current ratio of 1.32, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01. Yum China has a 12-month low of $41.00 and a 12-month high of $58.39. The firm’s 50-day moving average price is $51.19 and its 200-day moving average price is $47.29. The stock has a market capitalization of $18.47 billion, a price-to-earnings ratio of 20.84, a P/E/G ratio of 1.51 and a beta of 0.11.

Yum China (NYSE:YUMC) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The company had revenue of $2.82 billion during the quarter, compared to analyst estimates of $2.72 billion. During the same period in the previous year, the firm earned $0.30 earnings per share. Yum China’s quarterly revenue was up 8.8% compared to the same quarter last year. On average, equities research analysts anticipate that Yum China will post 2.54 EPS for the current fiscal year.

Yum China declared that its board has initiated a share repurchase plan on Friday, December 12th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to repurchase up to 5.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Yum China Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Wednesday, March 4th. This is a positive change from Yum China’s previous quarterly dividend of $0.24. Yum China’s dividend payout ratio is currently 38.25%.

Wall Street Analyst Weigh In

YUMC has been the subject of a number of research analyst reports. The Goldman Sachs Group restated a “buy” rating and issued a $58.50 target price on shares of Yum China in a research note on Wednesday, February 4th. Wall Street Zen raised Yum China from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Jefferies Financial Group reiterated a “buy” rating and issued a $63.64 target price on shares of Yum China in a research note on Thursday, February 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Finally, CLSA restated an “outperform” rating and issued a $55.00 price target 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 company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $59.05.

Yum China 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.