Brokerages Set Yum China (NYSE:YUMC) Target Price at $55.00

Yum China (NYSE:YUMC) has been assigned an average rating of “Buy” from the three analysts that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $55.00.

A number of analysts recently weighed in on the stock. CLSA reaffirmed an “outperform” rating and issued a $55.00 price objective on shares of Yum China in a report on Tuesday, November 25th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a research note on Wednesday, October 8th.

Insider Activity

In other news, insider Jeff Kuai sold 5,167 shares of Yum China stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $48.00, for a total transaction of $248,016.00. Following the transaction, the insider directly owned 56,602 shares in the company, valued at approximately $2,716,896. This trade represents a 8.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Duoduo (Howard) Huang sold 4,888 shares of the company’s stock in a transaction 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 sale, the insider owned 22,510 shares of the company’s stock, valued at approximately $1,082,731. This trade represents a 17.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 18,242 shares of company stock worth $878,397 over the last three months. Corporate insiders own 0.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of YUMC. Jackson Grant Investment Advisers Inc. increased its stake in Yum China by 526.3% in the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock worth $26,000 after purchasing an additional 500 shares in the last quarter. Quent Capital LLC acquired a new position in shares of Yum China in the third quarter worth about $28,000. Bell Investment Advisors Inc increased its position in shares of Yum China by 95.6% in the second quarter. Bell Investment Advisors Inc now owns 665 shares of the company’s stock worth $30,000 after acquiring an additional 325 shares in the last quarter. Marshall & Sullivan Inc. WA acquired a new stake in shares of Yum China during the second quarter valued at approximately $36,000. Finally, Miller Global Investments LLC purchased a new stake in shares of Yum China in the 4th quarter valued at approximately $41,000. Institutional investors own 85.58% of the company’s stock.

Yum China Stock Performance

YUMC stock opened at $47.40 on Friday. The company has a current ratio of 1.32, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01. The firm has a market cap of $17.13 billion, a P/E ratio of 19.67, a P/E/G ratio of 1.54 and a beta of 0.14. Yum China has a 12-month low of $41.00 and a 12-month high of $53.99. The stock’s 50 day simple moving average is $47.65 and its 200 day simple moving average is $45.86.

Yum China (NYSE:YUMC) last released its quarterly earnings data on Tuesday, November 4th. The company reported $0.76 earnings per share for the quarter, hitting the consensus estimate of $0.76. The firm had revenue of $3.21 billion for the quarter, compared to analyst estimates of $3.20 billion. Yum China had a net margin of 7.81% and a return on equity of 14.08%. Yum China’s quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.77 earnings per share. As a group, equities research analysts predict that Yum China will post 2.54 EPS for the current year.

Yum China Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 23rd. Stockholders of record on Tuesday, December 2nd were issued a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Tuesday, December 2nd. Yum China’s dividend payout ratio (DPR) is 39.83%.

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

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.