Yum China (NYSE:YUMC) Shares Gap Up - Time to Buy?

Yum China Holdings, Inc. (NYSE:YUMC - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $45.07, but opened at $49.81. Yum China shares last traded at $49.21, with a volume of 1,099,127 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Macquarie raised Yum China from an "underperform" rating to an "outperform" rating and lifted their price objective for the company from $30.00 to $37.40 in a report on Tuesday, August 6th. Citigroup upgraded Yum China to a "strong-buy" rating in a research report on Monday, September 30th. One research analyst has rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Yum China currently has an average rating of "Buy" and a consensus target price of $46.18.

Yum China Price Performance

The stock has a fifty day moving average of $40.62 and a 200-day moving average of $36.40. The firm has a market capitalization of $18.57 billion, a P/E ratio of 23.77, a PEG ratio of 1.63 and a beta of 0.36. The company has a quick ratio of 1.09, a current ratio of 1.23 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC - Get Free Report) last released its quarterly earnings results on Monday, August 5th. The company reported $0.55 EPS for the quarter, beating the consensus estimate of $0.47 by $0.08. Yum China had a net margin of 7.61% and a return on equity of 12.41%. The business had revenue of $2.68 billion for the quarter, compared to analysts' expectations of $2.76 billion. During the same period in the prior year, the firm earned $0.47 earnings per share. Yum China's revenue was up .9% compared to the same quarter last year. Equities analysts predict that Yum China Holdings, Inc. will post 2.23 EPS for the current fiscal year.

Insider Activity

In other news, Director Robert Blaine Aiken, Jr. acquired 3,000 shares of the company's stock in a transaction on Friday, August 16th. The stock was purchased at an average cost of $33.74 per share, with a total value of $101,220.00. Following the acquisition, the director now owns 12,088 shares of the company's stock, valued at $407,849.12. This trade represents a 0.00 % increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Yum China news, Director Robert Blaine Aiken, Jr. bought 3,000 shares of the stock in a transaction on Friday, August 16th. The stock was purchased at an average price of $33.74 per share, with a total value of $101,220.00. Following the acquisition, the director now owns 12,088 shares of the company's stock, valued at approximately $407,849.12. The trade was a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jeff Kuai purchased 3,900 shares of Yum China stock in a transaction dated Tuesday, August 13th. The stock was bought at an average price of $32.72 per share, for a total transaction of $127,608.00. Following the completion of the transaction, the insider now directly owns 3,900 shares in the company, valued at $127,608. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 18,400 shares of company stock valued at $619,671. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Eagle Bay Advisors LLC raised its holdings in Yum China by 53.7% in the second quarter. Eagle Bay Advisors LLC now owns 1,088 shares of the company's stock worth $34,000 after purchasing an additional 380 shares during the period. LRI Investments LLC bought a new position in Yum China during the first quarter worth about $36,000. Farther Finance Advisors LLC grew its stake in Yum China by 43.9% in the third quarter. Farther Finance Advisors LLC now owns 846 shares of the company's stock valued at $38,000 after acquiring an additional 258 shares during the period. Pathway Financial Advisers LLC bought a new stake in shares of Yum China in the first quarter worth about $39,000. Finally, McClarren Financial Advisors Inc. raised its position in shares of Yum China by 906.5% during the third quarter. McClarren Financial Advisors Inc. now owns 926 shares of the company's stock worth $42,000 after purchasing an additional 834 shares during the period. Institutional investors own 85.58% of the company's stock.

Yum China Company Profile

Yum China Holdings, Inc owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services.