Shares of Yum China Holdings Inc (NASDAQ:YUMC) shot up 5.3% during trading on Monday after the company announced a dividend. The company traded as high as $43.32 and last traded at $42.99. 5,166,637 shares were traded during trading, an increase of 79% from the average session volume of 2,891,570 shares. The stock had previously closed at $40.82.
The newly announced dividend which will be paid on Thursday, December 21st. Shareholders of record on Thursday, November 30th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Wednesday, November 29th.
A number of brokerages have commented on YUMC. Morgan Stanley reaffirmed an “overweight” rating and issued a $45.00 price target on shares of Yum China Holdings in a research note on Monday. Instinet reaffirmed a “buy” rating and issued a $51.60 price target (up from $51.50) on shares of Yum China Holdings in a research note on Monday. Nomura began coverage on Yum China Holdings in a research note on Monday. They issued a “buy” rating and a $51.60 price target on the stock. Bank of America Corporation reaffirmed a “neutral” rating and issued a $45.10 price target (up from $41.60) on shares of Yum China Holdings in a research note on Friday, October 6th. Finally, Deutsche Bank AG raised Yum China Holdings from a “hold” rating to a “buy” rating and set a $45.30 price target on the stock in a research note on Friday, October 6th. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and eight have assigned a buy rating to the company. Yum China Holdings presently has an average rating of “Hold” and an average price target of $42.35.
Yum China Holdings (NASDAQ:YUMC) last issued its quarterly earnings results on Thursday, October 5th. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.04). Yum China Holdings had a return on equity of 16.35% and a net margin of 7.09%. The business had revenue of $2.04 billion during the quarter, compared to analysts’ expectations of $1.98 billion. During the same quarter in the previous year, the company posted $0.52 earnings per share. The company’s quarterly revenue was up 8.2% compared to the same quarter last year. Equities analysts anticipate that Yum China Holdings Inc will post $1.43 EPS for the current fiscal year.
Yum China Holdings announced that its Board of Directors has authorized a stock repurchase program on Thursday, October 5th that allows the company to repurchase $550.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 3.6% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.
In other news, insider Danny Tan sold 2,124 shares of the stock in a transaction that occurred on Monday, October 9th. The stock was sold at an average price of $41.84, for a total value of $88,868.16. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Mark Chu sold 22,184 shares of the stock in a transaction that occurred on Thursday, August 17th. The stock was sold at an average price of $37.72, for a total value of $836,780.48. Following the completion of the sale, the insider now owns 23,457 shares in the company, valued at $884,798.04. The disclosure for this sale can be found here. Over the last quarter, insiders sold 24,928 shares of company stock worth $947,863.
Several hedge funds and other institutional investors have recently modified their holdings of YUMC. BlackRock Inc. increased its holdings in Yum China Holdings by 28.7% during the 2nd quarter. BlackRock Inc. now owns 27,306,495 shares of the company’s stock worth $1,076,695,000 after purchasing an additional 6,087,048 shares during the period. Comerica Securities Inc. purchased a new position in Yum China Holdings during the 2nd quarter worth $251,000. Ameriprise Financial Inc. increased its holdings in Yum China Holdings by 40.9% during the 2nd quarter. Ameriprise Financial Inc. now owns 3,514,169 shares of the company’s stock worth $138,564,000 after purchasing an additional 1,020,928 shares during the period. Commonwealth Bank of Australia increased its holdings in Yum China Holdings by 17.7% during the 2nd quarter. Commonwealth Bank of Australia now owns 29,956 shares of the company’s stock worth $1,180,000 after purchasing an additional 4,500 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. increased its holdings in Yum China Holdings by 10.5% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 8,865 shares of the company’s stock worth $350,000 after purchasing an additional 845 shares during the period.
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About Yum China Holdings
Yum China Holdings, Inc is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts.
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