Yum China (NYSE:YUMC) Trading Down 4.2% – What’s Next?

Yum China (NYSE:YUMC) traded down 4.2% on Thursday . The stock traded as low as $44.91 and last traded at $45.22. 653,233 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 1,607,718 shares. The stock had previously closed at $47.18.

Analyst Ratings Changes

YUMC has been the topic of a number of analyst reports. The Goldman Sachs Group reiterated a “buy” rating and set a $59.00 price objective on shares of Yum China in a research note on Thursday, July 30th. Wall Street Zen upgraded Yum China from a “hold” rating to a “buy” rating in a research note on Monday, August 17th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a report on Friday, August 21st. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $59.21.

Yum China Stock Performance

The company’s fifty day simple moving average is $44.85 and its 200 day simple moving average is $47.63. The company has a current ratio of 0.96, a quick ratio of 0.78 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $15.47 billion, a P/E ratio of 16.54, a P/E/G ratio of 1.18 and a beta of 0.09.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.67 by $0.03. The firm had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.05 billion. Yum China had a net margin of 7.84% and a return on equity of 15.82%. The business’s quarterly revenue was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.58 earnings per share. As a group, sell-side analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be given a $0.29 dividend. The ex-dividend date is Thursday, August 27th. This represents a $1.16 annualized dividend and a yield of 2.6%. Yum China’s payout ratio is 42.49%.

Insiders Place Their Bets

In other Yum China news, insider Jeff Kuai sold 14,586 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $47.72, for a total transaction of $696,043.92. Following the sale, the insider owned 63,541 shares in the company, valued at $3,032,176.52. This trade represents a 18.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Duoduo (Howard) Huang sold 24,096 shares of Yum China stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $47.08, for a total value of $1,134,439.68. Following the sale, the insider directly owned 7,589 shares of the company’s stock, valued at approximately $357,290.12. This trade represents a 76.05% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.44% of the stock is owned by corporate insiders.

Institutional Trading of Yum China

Hedge funds have recently bought and sold shares of the company. Main Street Group LTD bought a new position in Yum China during the first quarter valued at approximately $26,000. Elyxium Wealth LLC bought a new stake in shares of Yum China in the 4th quarter worth approximately $27,000. Ascentis Independent Advisors bought a new stake in shares of Yum China in the 1st quarter worth approximately $27,000. Cresta Advisors Ltd. purchased a new stake in shares of Yum China in the 4th quarter valued at $28,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Yum China during the 2nd quarter valued at $29,000. Institutional investors own 85.58% of the company’s stock.

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.