Yum China (NYSE:YUMC) Upgraded by Goldman Sachs Group to “Buy”

Yum China (NYSE:YUMC) was upgraded by Goldman Sachs Group from a “neutral” rating to a “buy” rating in a report released on Wednesday, April 17th, MarketBeat.com reports. The brokerage presently has a $54.00 price target on the stock, up from their prior price target of $43.00. Goldman Sachs Group’s target price indicates a potential upside of 20.78% from the company’s previous close.

Other analysts also recently issued research reports about the stock. Zacks Investment Research downgraded shares of Yum China from a “buy” rating to a “hold” rating in a report on Thursday, April 4th. TheStreet upgraded shares of Yum China from a “c+” rating to a “b” rating in a report on Thursday, January 24th. OTR Global upgraded shares of Yum China to a “positive” rating in a report on Thursday, April 11th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Yum China from $36.50 to $48.00 and gave the stock an “overweight” rating in a report on Monday, March 18th. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Yum China currently has an average rating of “Buy” and an average target price of $47.88.

Shares of NYSE:YUMC traded down $1.25 during trading on Wednesday, reaching $44.71. The stock had a trading volume of 2,825,929 shares, compared to its average volume of 2,530,157. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.31 and a current ratio of 1.56. Yum China has a 52 week low of $30.10 and a 52 week high of $48.27. The firm has a market cap of $17.42 billion, a P/E ratio of 29.22, a P/E/G ratio of 2.89 and a beta of 0.81.

Yum China (NYSE:YUMC) last issued its earnings results on Monday, April 29th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.52 by $0.07. Yum China had a net margin of 7.55% and a return on equity of 20.38%. The business had revenue of $2.30 billion for the quarter, compared to analyst estimates of $2.27 billion. During the same period in the prior year, the firm earned $0.53 earnings per share. Yum China’s revenue was up 3.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Yum China will post 1.68 earnings per share for the current year.

In related news, insider Alice H. Wang sold 1,697 shares of the firm’s stock in a transaction that occurred on Tuesday, May 7th. The shares were sold at an average price of $46.09, for a total value of $78,214.73. Following the sale, the insider now directly owns 10,120 shares of the company’s stock, valued at $466,430.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Angela Ai sold 15,253 shares of the firm’s stock in a transaction that occurred on Wednesday, February 13th. The shares were sold at an average price of $41.28, for a total transaction of $629,643.84. Following the completion of the sale, the insider now directly owns 31,485 shares in the company, valued at $1,299,700.80. The disclosure for this sale can be found here. Insiders sold 53,927 shares of company stock valued at $2,311,728 over the last 90 days. 0.44% of the stock is owned by company insiders.

Several hedge funds have recently bought and sold shares of the business. Icon Wealth Partners LLC purchased a new position in shares of Yum China in the first quarter worth $94,000. BlackRock Inc. increased its stake in shares of Yum China by 19.5% in the first quarter. BlackRock Inc. now owns 39,168,859 shares of the company’s stock worth $1,759,077,000 after buying an additional 6,383,587 shares during the period. Acadian Asset Management LLC increased its stake in shares of Yum China by 34.5% in the first quarter. Acadian Asset Management LLC now owns 939,208 shares of the company’s stock worth $42,180,000 after buying an additional 240,928 shares during the period. Parametric Portfolio Associates LLC increased its stake in shares of Yum China by 21.8% in the first quarter. Parametric Portfolio Associates LLC now owns 1,127,642 shares of the company’s stock worth $50,642,000 after buying an additional 201,939 shares during the period. Finally, First Trust Advisors LP increased its stake in shares of Yum China by 113.2% in the first quarter. First Trust Advisors LP now owns 1,071,360 shares of the company’s stock worth $48,115,000 after buying an additional 568,766 shares during the period. 76.57% of the stock is currently owned by hedge funds and other institutional investors.

About Yum China

Yum China Holdings, Inc owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, Little Sheep, and COFFii & JOY brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, Mexican-style food, and coffee categories.

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Analyst Recommendations for Yum China (NYSE:YUMC)

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