Yum China (NYSE:YUMC) Trading Down 4.4% – Should You Sell?

Shares of Yum China Holdings, Inc. (NYSE:YUMC) dropped 4.4% on Thursday . The stock traded as low as $42.02 and last traded at $41.99. Approximately 922,948 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 2,923,986 shares. The stock had previously closed at $43.94.

Analyst Upgrades and Downgrades

YUMC has been the subject of a number of recent analyst reports. Daiwa America upgraded shares of Yum China to a “strong-buy” rating in a research report on Wednesday, April 9th. StockNews.com cut shares of Yum China from a “buy” rating to a “hold” rating in a research note on Tuesday, February 25th. One analyst has rated the stock with a hold rating, two have given a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $48.70.

Yum China Price Performance

The company has a quick ratio of 1.15, a current ratio of 1.29 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $15.57 billion, a price-to-earnings ratio of 17.76, a price-to-earnings-growth ratio of 1.72 and a beta of 0.32. The stock’s 50-day moving average price is $49.05 and its 200-day moving average price is $47.56.

Yum China (NYSE:YUMC) last announced its quarterly earnings data on Thursday, February 6th. The company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.01). Yum China had a return on equity of 13.83% and a net margin of 8.06%. Equities research analysts anticipate that Yum China Holdings, Inc. will post 2.54 earnings per share for the current year.

Yum China Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 27th. Stockholders of record on Thursday, March 6th were given a dividend of $0.24 per share. This is a positive change from Yum China’s previous quarterly dividend of $0.16. This represents a $0.96 annualized dividend and a dividend yield of 2.32%. The ex-dividend date was Thursday, March 6th. Yum China’s payout ratio is presently 41.20%.

Insiders Place Their Bets

In related news, CEO Joey Wat sold 37,252 shares of the firm’s stock in a transaction on Wednesday, March 5th. The shares were sold at an average price of $49.71, for a total value of $1,851,796.92. Following the completion of the transaction, the chief executive officer now owns 382,657 shares of the company’s stock, valued at approximately $19,021,879.47. This trade represents a 8.87 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Leila Zhang sold 4,000 shares of Yum China stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $50.59, for a total value of $202,360.00. Following the completion of the sale, the chief technology officer now directly owns 52,075 shares in the company, valued at approximately $2,634,474.25. This represents a 7.13 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 45,152 shares of company stock worth $2,242,176. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Yum China

Several hedge funds and other institutional investors have recently made changes to their positions in the company. GeoWealth Management LLC raised its stake in Yum China by 689.6% in the 4th quarter. GeoWealth Management LLC now owns 529 shares of the company’s stock valued at $25,000 after acquiring an additional 462 shares during the period. Kentucky Trust Co acquired a new stake in Yum China during the fourth quarter worth approximately $29,000. CX Institutional bought a new position in Yum China during the 1st quarter worth $37,000. Graney & King LLC acquired a new position in Yum China in the 4th quarter valued at $39,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Yum China by 58.5% during the 4th quarter. EverSource Wealth Advisors LLC now owns 878 shares of the company’s stock valued at $42,000 after acquiring an additional 324 shares during the period. 85.58% of the stock is owned by institutional investors.

About Yum China

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.