Yum China Holdings (YUMC) Board Initiates Stock Repurchase Program
Yum China Holdings (NASDAQ:YUMC) declared that its Board of Directors has approved a share buyback program, which authorizes the company to repurchase $550.00 million in outstanding shares on Thursday, October 5th, EventVestor reports. This repurchase authorization authorizes the company to buy up to 3.6% 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 Holdings (NASDAQ:YUMC) traded down 0.05% during mid-day trading on Friday, reaching $39.95. The company had a trading volume of 2,250,883 shares. Yum China Holdings has a 12-month low of $23.79 and a 12-month high of $40.99. The stock has a market capitalization of $15.31 billion and a P/E ratio of 29.38. The stock has a 50 day moving average price of $38.81 and a 200-day moving average price of $38.81.
Yum China Holdings (NASDAQ:YUMC) last announced its quarterly earnings results on Thursday, October 5th. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.04). The company had revenue of $2.04 billion for the quarter, compared to analyst estimates of $1.98 billion. Yum China Holdings had a return on equity of 16.35% and a net margin of 7.09%. Yum China Holdings’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.52 earnings per share. Equities analysts anticipate that Yum China Holdings will post $1.46 EPS for the current fiscal year.
A number of research analysts recently commented on YUMC shares. Morgan Stanley raised their price target on Yum China Holdings from $35.00 to $41.00 and gave the stock an “overweight” rating in a research report on Monday, June 26th. Zacks Investment Research cut Yum China Holdings from a “hold” rating to a “sell” rating in a research report on Wednesday, September 6th. Deutsche Bank AG cut Yum China Holdings from a “buy” rating to a “hold” rating and raised their price target for the stock from $34.72 to $36.61 in a research report on Thursday, July 6th. Oppenheimer Holdings, Inc. restated a “buy” rating and issued a $43.00 price target on shares of Yum China Holdings in a research report on Friday, September 29th. Finally, Bank of America Corporation restated a “neutral” rating and issued a $41.60 price target on shares of Yum China Holdings in a research report on Sunday, July 30th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $39.20.
In other Yum China Holdings news, insider Mark Chu sold 22,184 shares of the stock in a transaction dated Thursday, August 17th. The stock was sold at an average price of $37.72, for a total transaction of $836,780.48. Following the sale, the insider now directly owns 23,457 shares of the company’s stock, valued at approximately $884,798.04. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.
Yum China Holdings Company Profile
Yum China Holdings, Inc is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts.
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