Hudson Bay Capital Management LP Purchases Shares of 91,902 Yum China $YUMC

Hudson Bay Capital Management LP acquired a new stake in shares of Yum China (NYSE:YUMC) in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 91,902 shares of the company’s stock, valued at approximately $3,944,000.

Several other large investors have also made changes to their positions in the company. Saranac Partners Ltd purchased a new position in shares of Yum China in the 3rd quarter worth $52,000. Swiss Life Asset Management Ltd grew its position in Yum China by 19.9% during the third quarter. Swiss Life Asset Management Ltd now owns 48,461 shares of the company’s stock valued at $2,087,000 after acquiring an additional 8,040 shares during the period. Cambria Investment Management L.P. increased its stake in Yum China by 23.1% during the third quarter. Cambria Investment Management L.P. now owns 13,024 shares of the company’s stock worth $559,000 after acquiring an additional 2,441 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new stake in Yum China during the third quarter worth about $3,288,000. Finally, WBI Investments LLC raised its holdings in shares of Yum China by 7.0% in the 3rd quarter. WBI Investments LLC now owns 51,806 shares of the company’s stock worth $2,224,000 after purchasing an additional 3,390 shares during the period. 85.58% of the stock is owned by hedge funds and other institutional investors.

Yum China Stock Performance

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 company has a current ratio of 1.05, a quick ratio of 0.85 and a debt-to-equity ratio of 0.01. The stock has a market cap of $18.30 billion, a P/E ratio of 20.64, a price-to-earnings-growth ratio of 1.46 and a beta of 0.11. The stock has a 50 day moving average of $52.48 and a 200-day moving average of $47.99.

Yum China (NYSE:YUMC) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share (EPS) 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 14.65%. The business had revenue of $2.82 billion during the quarter, compared to analyst estimates of $2.72 billion. During the same quarter in the previous year, the firm earned $0.30 earnings per share. The business’s revenue was up 8.8% compared to the same quarter last year. On average, analysts expect that Yum China will post 2.54 EPS for the current fiscal year.

Yum China Increases Dividend

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

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

Analysts Set New Price Targets

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

Insider Activity

In other news, insider Jerry Ding sold 3,000 shares of the 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 transaction, the insider owned 915 shares of the company’s stock, valued at approximately $50,453.10. This trade represents a 76.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Joey Wat sold 104,000 shares of Yum China stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $55.18, for a total value of $5,738,720.00. Following the completion of the transaction, the chief executive officer owned 433,306 shares of the company’s stock, valued at $23,909,825.08. This trade represents a 19.36% 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 135,117 shares of company stock worth $7,479,590. 0.40% of the stock is currently owned by corporate insiders.

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.