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

Yum China (NYSE:YUMC) has been given a consensus recommendation of “Moderate Buy” by the four analysts that are presently covering the company, MarketBeat.com reports. One analyst has rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $59.0467.

A number of research firms have recently weighed in on YUMC. Wall Street Zen raised Yum China from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. CLSA reiterated 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 restated a “buy” rating and set a $63.64 target price on shares of Yum China in a research report on Thursday, February 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a report on Wednesday, January 21st. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $58.50 price target on shares of Yum China in a research note on Wednesday, February 4th.

Insiders Place Their Bets

In other news, insider Duoduo (Howard) Huang sold 4,888 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $48.10, for a total value of $235,112.80. Following the completion of the transaction, the insider directly owned 22,510 shares in the company, valued at approximately $1,082,731. The trade was a 17.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jerry Ding sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $55.14, for a total transaction of $165,420.00. Following the sale, the insider directly owned 915 shares of the company’s stock, valued at approximately $50,453.10. This trade represents a 76.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 25,855 shares of company stock valued at $1,306,804 over the last 90 days. 0.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Jackson Grant Investment Advisers Inc. increased its stake in shares of 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 last quarter. Duncker Streett & Co. Inc. acquired a new position in Yum China during the fourth quarter worth about $26,000. Elyxium Wealth LLC acquired a new stake in shares of Yum China in the 4th quarter valued at approximately $27,000. Quent Capital LLC acquired a new position in Yum China during the 3rd quarter worth approximately $28,000. Finally, Cresta Advisors Ltd. acquired a new position in Yum China during the 4th quarter worth approximately $28,000. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Yum China Trading Up 3.3%

Shares of YUMC stock opened at $55.42 on Tuesday. Yum China has a 12-month low of $41.00 and a 12-month high of $58.39. The company has a market capitalization of $20.03 billion, a PE ratio of 22.08, a price-to-earnings-growth ratio of 1.57 and a beta of 0.13. The firm has a 50 day moving average price of $49.67 and a two-hundred day moving average price of $46.55. The company has a quick ratio of 1.15, a current ratio of 1.32 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC) last announced its earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.72 billion. Yum China had a return on equity of 14.46% and a net margin of 7.87%.The firm’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.30 earnings per share. As a group, analysts predict that Yum China will post 2.54 earnings per share for the current year.

Yum China declared that its Board of Directors has approved a share buyback program on Friday, December 12th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Yum China Increases Dividend

The business also recently announced 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 2.1%. The ex-dividend date 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%.

Yum China Company 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.