Hudson Bay Capital Management LP Makes New Investment in Yum China $YUMC

Hudson Bay Capital Management LP bought a new stake in shares of Yum China (NYSE:YUMC) in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 91,902 shares of the company’s stock, valued at approximately $3,944,000.

Other institutional investors and hedge funds also recently modified their holdings of the company. JPMorgan Chase & Co. boosted its holdings in shares of Yum China by 21.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 29,150,667 shares of the company’s stock valued at $1,303,326,000 after buying an additional 5,164,701 shares during the period. Principal Financial Group Inc. grew its position in shares of Yum China by 14.8% during the 3rd quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock valued at $883,687,000 after buying an additional 2,604,480 shares during the last quarter. Vanguard Group Inc. raised its stake in Yum China by 1.0% during the third quarter. Vanguard Group Inc. now owns 15,545,068 shares of the company’s stock worth $680,252,000 after acquiring an additional 158,607 shares during the period. Alliancebernstein L.P. raised its stake in Yum China by 13.1% during the second quarter. Alliancebernstein L.P. now owns 5,871,382 shares of the company’s stock worth $262,509,000 after acquiring an additional 677,928 shares during the period. Finally, Waverton Investment Management Ltd lifted its holdings in Yum China by 12.5% in the third quarter. Waverton Investment Management Ltd now owns 4,851,909 shares of the company’s stock worth $208,171,000 after acquiring an additional 539,531 shares during the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, insider Xueling Lu sold 23,504 shares of the business’s stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total value of $1,312,463.36. Following the sale, the insider owned 9,042 shares of the company’s stock, valued at approximately $504,905.28. The trade was a 72.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Joey Wat sold 104,000 shares of the company’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $55.18, for a total value of $5,738,720.00. Following the completion of the sale, the chief executive officer owned 433,306 shares of the company’s stock, valued at approximately $23,909,825.08. This trade represents a 19.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 135,117 shares of company stock worth $7,479,590 over the last ninety days. Company insiders own 0.40% of the company’s stock.

Yum China Stock Down 3.5%

Yum China stock opened at $51.81 on Friday. Yum China has a 52 week low of $41.00 and a 52 week high of $58.39. The stock has a market cap of $18.30 billion, a price-to-earnings ratio of 20.64, a PEG ratio of 1.46 and a beta of 0.11. The company’s 50-day moving average price is $52.48 and its two-hundred day moving average price is $47.99. The company has a current ratio of 1.05, a quick ratio of 0.85 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC) last issued its quarterly 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 during the quarter, compared to analyst estimates of $2.72 billion. Yum China had a net margin of 7.87% and a return on equity of 14.65%. The business’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.30 EPS. On average, analysts expect that Yum China will post 2.54 EPS for the current fiscal year.

Yum China announced that its Board of Directors has authorized a share buyback plan on Friday, December 12th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Yum China Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be given a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 2.2%. This is a positive change from Yum China’s previous quarterly dividend of $0.24. The ex-dividend date is Wednesday, March 4th. Yum China’s payout ratio is currently 46.22%.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. CLSA restated an “outperform” rating and issued a $55.00 target price on shares of Yum China in a research note on Tuesday, November 25th. The Goldman Sachs Group reissued a “buy” rating and issued a $58.50 price target on shares of Yum China in a report on Wednesday, February 4th. Jefferies Financial Group restated a “buy” rating and set a $63.64 price objective on shares of Yum China in a research report on Thursday, February 5th. Wall Street Zen raised Yum China from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Yum China presently has an average rating of “Moderate Buy” and an average price target of $59.05.

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.