Vestmark Advisory Solutions Inc. recently revealed that it acquired a new stake in Yum China Holdings Inc. The 4th quarter acquisition of 7,770 shares of the stock amounted to $425,000. This move showcases the growing interest of big players in the market towards Chinese stocks as they continue to offer attractive opportunities for strong returns on investments.
Yum China is known for its popular fast-food brands such as KFC and Pizza Hut among others, which hold a significant market share in the food industry. It recently announced an increase in its quarterly dividend payment from $0.12 to $0.13 per share, making its annualized dividend yield at 0.81%. This move reflects Yum China’s positive financial performance and dedication to offering value to its shareholders.
However, despite these optimistic developments, some insiders have been shedding their shares of Yum China Holdings Inc. CEO Joey Wat sold over 12,018 company shares worth around $745,356.36 whereas Johnson Huang sold 10,707 shares amounting to $663,834 before another CEO also disposed off nearly half a million dollars worth of stock later on.
It is essential for investors to monitor insider movements even though there may not always be anything malicious behind them as this often indicates confidence levels regarding a stock’s future outlook if not simply personal financial circumstances demanding an immediate requirement for liquidity.
Overall, these mixed signals make forecasting difficult even though it remains clear that the trend of acquisitions and increment dividend payments makes Yum’s shares an exciting prospect amidst current economic uncertainties affecting the US markets’ & other international business landscapes alike.”
Yum China Holdings, Inc. Stays Resilient Despite Mixed Analyst Reviews and COVID-19 Challenges
Yum China Holdings, Inc. (NYSE:YUMC) is a corporation that owns, operates and franchises restaurants in China. As with most publicly traded companies, Yum China’s performance is tracked by investors and analysts alike. Recently, several institutional investors purchased positions in the company, including Retirement Financial Solutions LLC, Harbor Investment Advisory LLC, Accurate Wealth Management LLC, McClarren Financial Advisors Inc., and Eagle Bay Advisors LLC. Hedge funds and other institutional investors now own 78.89% of the stock.
Despite this activity from institutional investors, YUMC has received mixed reviews from analysts. TheStreet downgraded Yum China from a “b” rating to a “c+” rating while Jefferies Financial Group lowered shares from a “buy” rating to a “hold”. StockNews.com also downgraded Yum China’s shares from a “buy” rating to a “hold”.
Nonetheless, the company recently disclosed a positive change regarding its dividend payment. Shareholders who held stock as of March 7th were issued $0.13 per share compared to the previous quarterly dividend of $0.12 per share. This represents an annualized dividend of $0.52 per share and yields 0.81%. The payout ratio for Yum China is currently at 49.52%.
Trading at $64.02 per share on Tuesday April 6th with a market capitalization of $26.79 billion, Yum China has shown strong stability over the past year despite the COVID-19 pandemic disrupting operations worldwide; its one-year low is $36.05 while its one-year high reached $64.57 – close to its current price point.
Yum China announced earnings data on February 7th with revenues for the quarter totaling $2.09 billion versus analyst estimates of $2.31 billion causing some concern amongst investors due to an unexpected slide downwards in revenue by 8.9%. However, the company’s net margin is 4.62% and has a return on equity of 6.09%. While it missed earnings estimates by $0.01 per share, on average, analysts predict that Yum China will post earnings per share at $1.79 for the current year.
Despite its mixed reception from analysts lately and COVID-19’s ongoing impact, Yum China continues to show resilience as an established corporation with a strong track record in China’s food industry along with continued focus on adapting to changing circumstances and consumer needs throughout the pandemic-induced turbulence.
