Yum China Target of Unusually High Options Trading (NYSE:YUMC)

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Yum China Holdings Inc (NYSE:YUMC) was the target of some unusual options trading activity on Tuesday. Stock traders bought 4,518 call options on the stock. This is an increase of 1,421% compared to the average daily volume of 297 call options.

In related news, insider Angela Ai sold 13,477 shares of the stock in a transaction that occurred on Thursday, August 29th. The shares were sold at an average price of $44.74, for a total transaction of $602,960.98. Following the completion of the sale, the insider now directly owns 28,445 shares of the company’s stock, valued at $1,272,629.30. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.44% of the stock is owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in YUMC. Edge Wealth Management LLC acquired a new position in Yum China in the 3rd quarter valued at approximately $27,000. Griffin Asset Management Inc. acquired a new position in Yum China in the 2nd quarter valued at approximately $32,000. Westside Investment Management Inc. acquired a new position in Yum China in the 2nd quarter valued at approximately $34,000. Usca Ria LLC acquired a new position in Yum China in the 3rd quarter valued at approximately $34,000. Finally, HM Payson & Co. acquired a new position in Yum China in the 2nd quarter valued at approximately $37,000. Hedge funds and other institutional investors own 80.87% of the company’s stock.

Shares of YUMC stock traded down $0.29 during trading hours on Wednesday, reaching $42.52. 515,473 shares of the stock traded hands, compared to its average volume of 2,383,961. Yum China has a 1-year low of $31.35 and a 1-year high of $48.36. The business has a fifty day moving average price of $43.69 and a 200 day moving average price of $43.83. The company has a quick ratio of 1.18, a current ratio of 1.37 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $16.02 billion, a PE ratio of 27.79, a PEG ratio of 2.81 and a beta of 1.11.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Tuesday, October 29th. The company reported $0.58 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.54 by $0.04. Yum China had a net margin of 8.05% and a return on equity of 21.63%. The business had revenue of $2.32 billion for the quarter, compared to analyst estimates of $2.37 billion. During the same quarter in the previous year, the business earned $0.51 earnings per share. The firm’s revenue was up 4.8% compared to the same quarter last year. Research analysts expect that Yum China will post 1.74 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 17th. Stockholders of record on Tuesday, November 26th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, November 25th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.13%. Yum China’s dividend payout ratio is currently 31.37%.

A number of research firms have recently issued reports on YUMC. ValuEngine lowered shares of Yum China from a “hold” rating to a “sell” rating in a report on Wednesday, October 2nd. Jefferies Financial Group began coverage on shares of Yum China in a report on Monday, October 28th. They set a “buy” rating and a $54.60 price target on the stock. Finally, Zacks Investment Research upgraded shares of Yum China from a “hold” rating to a “buy” rating and set a $50.00 price target on the stock in a report on Saturday, September 14th. One analyst has rated the stock with a sell rating and seven have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $51.64.

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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