Yum China (NYSE:YUMC) Stock Price Down 7.4% Following Weak Earnings

Yum China Holdings, Inc. (NYSE:YUMC)’s stock price fell 7.4% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $42.70 and last traded at $43.21. 1,605,494 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 2,956,262 shares. The stock had previously closed at $46.68.

The company reported $0.77 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.01). The business had revenue of $2.98 billion for the quarter, compared to the consensus estimate of $3.13 billion. Yum China had a net margin of 8.06% and a return on equity of 13.83%. The business’s revenue was up .8% compared to the same quarter last year. During the same quarter last year, the business posted $0.71 EPS.

Yum China Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 27th. Investors of record on Thursday, March 6th were issued a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.23%. This is a boost from Yum China’s previous quarterly dividend of $0.16. The ex-dividend date was Thursday, March 6th. Yum China’s dividend payout ratio (DPR) is currently 41.20%.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on YUMC shares. StockNews.com cut Yum China from a “buy” rating to a “hold” rating in a report on Tuesday, February 25th. Daiwa America raised Yum China to a “strong-buy” rating in a report on Wednesday, April 9th. One equities research analyst has rated the stock with a hold rating, two have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $48.70.

Insider Buying and Selling at Yum China

In related news, insider Jeff Kuai sold 3,900 shares of the business’s stock in a transaction dated Monday, February 17th. The shares were sold at an average price of $48.21, for a total transaction of $188,019.00. Following the transaction, the insider now owns 56,602 shares in the company, valued at $2,728,782.42. The trade was a 6.45 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Leila Zhang sold 4,000 shares of the business’s stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $50.59, for a total transaction of $202,360.00. Following the transaction, the chief technology officer now owns 52,075 shares in the company, valued at $2,634,474.25. This represents a 7.13 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 45,152 shares of company stock worth $2,242,176. 0.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Yum China

A number of hedge funds and other institutional investors have recently bought and sold shares of YUMC. GeoWealth Management LLC boosted its position in shares of Yum China by 689.6% in the 4th quarter. GeoWealth Management LLC now owns 529 shares of the company’s stock worth $25,000 after purchasing an additional 462 shares in the last quarter. Kentucky Trust Co purchased a new stake in shares of Yum China in the fourth quarter worth $29,000. CX Institutional bought a new position in shares of Yum China during the first quarter valued at $37,000. Graney & King LLC purchased a new position in shares of Yum China in the 4th quarter worth about $39,000. Finally, Goodman Advisory Group LLC bought a new position in Yum China in the 1st quarter worth about $41,000. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Yum China Stock Down 7.7 %

The company has a market capitalization of $16.16 billion, a PE ratio of 18.50, a P/E/G ratio of 1.72 and a beta of 0.32. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.15 and a current ratio of 1.29. The company’s 50-day moving average is $48.33 and its 200 day moving average is $47.30.

About Yum China

Yum China Holdings, Inc owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services.