Investors Purchase Large Volume of Put Options on Yum China (YUMC)

Yum China Holdings Inc (NYSE:YUMC) saw unusually large options trading activity on Thursday. Stock traders purchased 3,456 put options on the company. This represents an increase of approximately 2,300% compared to the typical volume of 144 put options.

A number of equities research analysts have issued reports on the stock. Zacks Investment Research upgraded shares of Yum China from a “sell” rating to a “hold” rating in a research report on Thursday, March 1st. Morgan Stanley cut their price target on shares of Yum China from $49.00 to $48.00 and set an “overweight” rating on the stock in a report on Tuesday, March 20th. Three investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $47.35.

Yum China stock opened at $38.70 on Friday. The firm has a market cap of $15.35 billion, a PE ratio of 27.25, a price-to-earnings-growth ratio of 2.07 and a beta of 1.20. The company has a current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.01. Yum China has a 1-year low of $33.56 and a 1-year high of $48.75.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Tuesday, May 1st. The company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.05. The business had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $1.43 billion. Yum China had a net margin of 6.39% and a return on equity of 20.59%. Yum China’s revenue for the quarter was up 15.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.44 EPS. research analysts expect that Yum China will post 1.6 EPS for the current year.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 20th. Stockholders of record on Wednesday, May 30th were issued a dividend of $0.10 per share. The ex-dividend date was Tuesday, May 29th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.03%. Yum China’s dividend payout ratio is currently 28.17%.

In other Yum China news, insider Aiken Yuen sold 1,805 shares of the stock in a transaction that occurred on Tuesday, May 22nd. The shares were sold at an average price of $38.96, for a total value of $70,322.80. Following the completion of the sale, the insider now owns 2,337 shares in the company, valued at approximately $91,049.52. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Joey Wat bought 24,400 shares of the business’s stock in a transaction on Thursday, June 7th. The stock was bought at an average price of $40.97 per share, with a total value of $999,668.00. Following the transaction, the chief executive officer now owns 21,991 shares in the company, valued at $900,971.27. The disclosure for this purchase can be found here. 0.37% of the stock is owned by corporate insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Truewealth LLC acquired a new position in Yum China in the 4th quarter valued at $129,000. Signaturefd LLC acquired a new position in Yum China in the 1st quarter valued at $163,000. Optimum Investment Advisors acquired a new position in Yum China in the 1st quarter valued at $181,000. Burney Co. acquired a new position in Yum China in the 4th quarter valued at $202,000. Finally, Hyman Charles D acquired a new position in Yum China in the 1st quarter valued at $206,000. Institutional investors and hedge funds own 80.92% of the company’s stock.

Yum China Company Profile

Yum China Holdings, Inc engages in the management of restaurants and fast food chains. It operates through the following segments: Kentucky Fried Chicken (“”KFC””), Pizza Hut Casual Dining, and All Other Segments. The KFC segment owns and operates KFC stores. The Pizza Hut Casual Dining segment offerspizzas, entrees, pasta, rice dishes, appetizers, beverages, and desserts under the Pizza Hut brand.

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