The stock of Yum China Holdings Inc. (NYSE:YUMC) increased by $0.9 on Tuesday to at $54.24, up 1.68 percent. The last five days have seen an average of 1,122,211 shares of common stock traded. 14 times new highs were reached in the current year, with a fall of -$0.35. The average number of shares traded over the last 20 days was 1,673,983, while the average volume over the last 50 days totaled 1,569,407.
YUMC stock dropped -11.12% since last month. On 08/18/23, the company’s shares reached a one-month low of $51.10. The stock touched a high of $64.70 on 04/12/23, after rallying from a low of $38.58 in 52 weeks. The price of YUMC stock has declined by -0.76% or -$0.35 this year, reaching a new high 14 times. Still, the stock price is down -16.17% from the 52-week high.
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Insider Transactions
YUMC stock investors should be aware that Yum China Holdings Inc. (YUMC) stock had its last reported insider trading activity 110 days ago on May 11. On May 11, Chief Executive Officer Wat Joey sold 95,171 shares at $61.94 each. This transaction resulted in the insider making $5,894,521. On May 10, Wat Joey sold 2,800 shares at a price of US$61.94. After the transaction, the insider now owns 256,723 shares. Director BASSI PETER A had earlier sold 17,500 shares on May 09 for $60.96 a share. The transaction was completed for $1,066,852.
Valuation Metrics
Yum China Holdings Inc. (YUMC) has a trailing price-to-earnings (P/E) ratio of 30.80. Beta for the stock is 0.57. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.20, the price-to-book (PB) ratio of 3.46, and the price-to-cash flow ratio of 21.41.
Company paid $0.13 per share in dividends, remained unchanged from $0.13 last year. A $0.01 dividend increase was reported on Tuesday February 7 2023.
Financial Health
For the three months ended June 29, Yum China Holdings Inc.’s quick ratio was 1.50, while its current ratio was 1.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.01, and the total debt to equity ratio is 0.01. As far as profitability goes, gross margin for the trailing twelve months is 43.30% percent. Yum China Holdings Inc.’s EBITDA margin for the year ended June 29 was 19.48%, whereas its operating margin stood at 10.40% for the same period. Based on annual data, it had gross profit of $1.74 billion and revenue of $9.57 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. YUMC’s return on assets (ROA) during the last 12 months has been 6.30%. There was a 7.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 11.40%.
Earnings Surprise
According to Yum China Holdings Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.65 billion, while revenues rose by 19.82% to $2.92 billion. It was predicted that Yum China Holdings Inc.’s quarterly earnings would be $0.47, but it ended up being $0.46, beating the consensus by 2.20%. EBITDA was $369.0 million for the quarter. At the end of Yum China Holdings Inc.’s most recent quarter ended June 29, its liabilities totaled 4.47 billion, while its total debt was $2.22 billion. Equity owned by shareholders amounts to $416.86 million.
Technical Picture
Here’s a quick look at Yum China Holdings Inc.’s (YUMC) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 48.86%, suggesting the stock is Neutral, with a 22.02% historical volatility rate.
The stochastic %K and %D were 34.84% and 32.00% respectively, while the average true range (ATR) was 1.20. Based on the 14-day stochastic reading of 45.26%, the RSI (14) reading is 45.13%. On the 9-day MACD Oscillator, the stock is at 0.24, and the 14-day reading is at -0.39.
Analyst Ratings
Yum China Holdings Inc. (NYSE: YUMC) was downgraded by Jefferies to a a Hold rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Yum China Holdings Inc. (YUMC) an Overweight rating. YUMC is a stock that is recommended for selling by 1 brokerage firm, while 3 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 6 rates it overweight and 18 others recommend it as a buy.
What is YUMC’s price target for the next 12 months?
The current consensus forecast for the stock is between $50.00 and $78.00, with a median target price of $74.62. In analyzing these forecasts, the average price target given by analysts for Yum China Holdings Inc. (YUMC) is $73.07.
