Wall Street Zen Upgrades Yum China (NYSE:YUMC) to Buy

Yum China (NYSE:YUMC) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Saturday.

A number of other equities research analysts have also recently issued reports on the stock. CLSA restated an “outperform” rating and set a $55.00 price target on shares of Yum China in a report on Tuesday, November 25th. Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $58.50 target price on shares of Yum China in a report on Wednesday. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $63.64 price target on shares of Yum China in a report on Thursday. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $59.05.

Yum China Trading Up 4.0%

Shares of YUMC stock opened at $57.87 on Friday. Yum China has a 12 month low of $41.00 and a 12 month high of $58.39. The company has a market cap of $20.92 billion, a PE ratio of 23.06, a price-to-earnings-growth ratio of 1.58 and a beta of 0.14. The company has a quick ratio of 1.15, a current ratio of 1.32 and a debt-to-equity ratio of 0.01. The business’s 50 day moving average is $48.61 and its two-hundred day moving average is $46.22.

Yum China (NYSE:YUMC) last issued its quarterly earnings data 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. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The business had revenue of $2.82 billion during the quarter, compared to analysts’ expectations of $2.72 billion. During the same period in the previous year, the company earned $0.30 earnings per share. Yum China’s revenue for the quarter was up 8.8% on a year-over-year basis. Equities analysts predict that Yum China will post 2.54 EPS for the current year.

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

Insider Buying and Selling at Yum China

In other news, insider Jerry Ding sold 3,000 shares of the firm’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $55.14, for a total transaction of $165,420.00. Following the completion of the transaction, 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Warton Wang sold 8,187 shares of Yum China stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $48.28, for a total transaction of $395,268.36. Following the sale, the insider owned 46,847 shares in the company, valued at approximately $2,261,773.16. This trade represents a 14.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 21,242 shares of company stock worth $1,043,817. Corporate insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Yum China

A number of hedge funds have recently modified their holdings of the stock. US Bancorp DE increased its holdings in Yum China by 21.7% in the second quarter. US Bancorp DE now owns 32,088 shares of the company’s stock valued at $1,435,000 after purchasing an additional 5,723 shares during the last quarter. Broad Peak Investment Advisers Pte Ltd acquired a new position in shares of Yum China during the 3rd quarter worth about $27,679,000. Massachusetts Financial Services Co. MA increased its stake in shares of Yum China by 14.3% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 4,734,295 shares of the company’s stock valued at $203,196,000 after acquiring an additional 591,251 shares during the last quarter. Pictet North America Advisors SA increased its stake in shares of Yum China by 4.9% in the 3rd quarter. Pictet North America Advisors SA now owns 497,944 shares of the company’s stock valued at $21,299,000 after acquiring an additional 23,096 shares during the last quarter. Finally, Nordea Investment Management AB raised its position in shares of Yum China by 1.6% in the 2nd quarter. Nordea Investment Management AB now owns 1,026,244 shares of the company’s stock valued at $45,740,000 after acquiring an additional 15,896 shares during the period. 85.58% of the stock is owned by institutional investors and hedge funds.

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.