Yum China (YUMC) Cut to Sell at Zacks Investment Research
Yum China (NYSE:YUMC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Yum China Holdings, Inc. is a licensee of Yum! Brands primarily in mainland China. The company have rights to KFC, China’s quick-service restaurant concept, Pizza Hut, casual dining restaurant brand and Taco Bell. Yum China Holdings, Inc. is based in Shanghai, China. “
A number of other research firms also recently weighed in on YUMC. Citigroup started coverage on shares of Yum China in a research report on Monday, September 18th. They set a “buy” rating and a $51.00 target price for the company. Deutsche Bank raised shares of Yum China from a “hold” rating to a “buy” rating and set a $45.30 target price for the company in a research report on Friday, October 6th. Oppenheimer reissued a “buy” rating and set a $43.00 target price on shares of Yum China in a research report on Friday, September 29th. Nomura began coverage on shares of Yum China in a research report on Monday, October 9th. They set a “buy” rating and a $51.60 target price for the company. Finally, Morgan Stanley restated an “overweight” rating and set a $45.00 price target on shares of Yum China in a research note on Monday, October 9th. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and eight have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $43.38.
Yum China (NYSE:YUMC) last released its earnings results on Thursday, October 5th. The company reported $0.52 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.56 by ($0.04). Yum China had a net margin of 8.43% and a return on equity of 21.35%. The company had revenue of $2.04 billion for the quarter, compared to the consensus estimate of $1.98 billion. During the same period in the prior year, the company earned $0.52 earnings per share. The firm’s revenue was up 8.2% on a year-over-year basis. research analysts expect that Yum China will post 1.44 earnings per share for the current fiscal year.
In other Yum China news, insider Danny Tan sold 2,124 shares of the stock in a transaction that occurred on Monday, October 9th. The shares were sold at an average price of $41.84, for a total value of $88,868.16. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Angela Ai sold 17,678 shares of the stock in a transaction that occurred on Thursday, October 12th. The stock was sold at an average price of $43.05, for a total transaction of $761,037.90. The disclosure for this sale can be found here. Corporate insiders own 0.23% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of YUMC. San Francisco Sentry Investment Group CA purchased a new stake in Yum China in the 2nd quarter worth approximately $157,000. Nippon Life Insurance Co. purchased a new stake in shares of Yum China during the 2nd quarter valued at $162,000. Tower Research Capital LLC TRC purchased a new stake in shares of Yum China during the 2nd quarter valued at $176,000. Goelzer Investment Management Inc. purchased a new stake in shares of Yum China during the 3rd quarter valued at $201,000. Finally, Taurus Asset Management LLC purchased a new stake in shares of Yum China during the 2nd quarter valued at $212,000. Institutional investors and hedge funds own 86.57% of the company’s stock.
About Yum China
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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