Headwater Capital Co Ltd Has $5.14 Million Position in Yum China $YUMC

Headwater Capital Co Ltd decreased its holdings in Yum China (NYSE:YUMC) by 45.5% in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 119,700 shares of the company’s stock after selling 99,850 shares during the quarter. Yum China accounts for approximately 1.3% of Headwater Capital Co Ltd’s holdings, making the stock its 15th biggest holding. Headwater Capital Co Ltd’s holdings in Yum China were worth $5,138,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Focus Partners Wealth raised its position in Yum China by 13.8% in the first quarter. Focus Partners Wealth now owns 21,289 shares of the company’s stock worth $1,108,000 after purchasing an additional 2,582 shares in the last quarter. Strs Ohio bought a new stake in shares of Yum China in the 1st quarter valued at approximately $99,000. MQS Management LLC acquired a new position in shares of Yum China in the 2nd quarter worth approximately $206,000. Y Intercept Hong Kong Ltd bought a new position in shares of Yum China during the 2nd quarter worth approximately $3,749,000. Finally, AustralianSuper Pty Ltd bought a new position in shares of Yum China during the 2nd quarter worth approximately $627,000. 85.58% of the stock is owned by institutional investors.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other news, CEO Joey Wat sold 104,000 shares of Yum China stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $55.18, for a total transaction of $5,738,720.00. Following the completion of the sale, the chief executive officer owned 433,306 shares in the company, valued at $23,909,825.08. The trade was a 19.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Xueling Lu sold 23,504 shares of the business’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the sale, the insider directly owned 9,042 shares of the company’s stock, valued at approximately $504,905.28. This trade represents a 72.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 135,117 shares of company stock valued at $7,479,590. 0.40% of the stock is currently owned by insiders.

Yum China Stock Performance

Shares of Yum China stock opened at $56.44 on Thursday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15. The firm has a 50 day simple moving average of $50.74 and a 200 day simple moving average of $47.02. Yum China has a fifty-two week low of $41.00 and a fifty-two week high of $58.39. The firm has a market cap of $20.40 billion, a P/E ratio of 22.49, a P/E/G ratio of 1.58 and a beta of 0.14.

Yum China (NYSE:YUMC) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. The firm had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.72 billion. Yum China had a return on equity of 14.46% and a net margin of 7.87%.The business’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same period last year, the company earned $0.30 EPS. Sell-side analysts predict that Yum China will post 2.54 earnings per share for the current fiscal year.

Yum China Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be given a $0.29 dividend. The ex-dividend date is Wednesday, March 4th. This is a positive change from Yum China’s previous quarterly dividend of $0.24. This represents a $1.16 dividend on an annualized basis and a yield of 2.1%. Yum China’s dividend payout ratio is 38.25%.

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

Yum China Company Profile

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.