US stock futures flounder amid tech weakness, Fed caution
Jeff Kuai, the General Manager of Pizza Hut at Yum China Holdings, Inc. (NYSE:YUMC), recently sold 3,900 shares of the company’s common stock. The transaction, which took place on February 17, 2025, was executed on the Hong Kong Stock Exchange and totaled approximately $187,999, with shares sold at an average price of $48.2051. The sale comes as YUMC trades near its 52-week high of $52, with the stock showing remarkable strength, up 47% over the past six months. According to InvestingPro, the company maintains a strong financial health score of GOOD, supported by consistent dividend payments and moderate debt levels.
Following this sale, Kuai no longer holds these shares directly, as they were owned indirectly by his spouse. However, he still retains a significant holding of 56,602 shares in Yum China, currently valued at approximately $2.8 million based on the current stock price of $49.3. The transaction was noted for its execution in Hong Kong dollars and reported in U.S. dollars using an exchange rate of 7.8. With a market capitalization of $18.59 billion and a P/E ratio of 21.07, YUMC appears slightly undervalued according to InvestingPro’s comprehensive analysis, which includes over 30 financial metrics and exclusive insights available to subscribers.
In other recent news, Yum China Holdings has seen adjustments to its stock price targets by both JPMorgan and Deutsche Bank (ETR:DBKGn). JPMorgan analyst, Kevin Yin, reduced the target to $59 from $60, maintaining an Overweight rating on the company’s shares. Yin’s report anticipates Yum China’s fourth quarter 2024 sales and earnings per share (EPS) to increase by 4% and 12% year-over-year, respectively. Deutsche Bank’s analyst, Han Zhang, adjusted the price target to $54.30, down from the previous $57.00, while reaffirming a Buy rating on the stock. Zhang expects Yum China’s profit margin trend to remain stable throughout 2025, citing several factors that should contribute to the company’s financial stability.
In addition to these developments, Yum China’s upcoming analyst briefing on February 6, 2025, is expected to offer insights into the sales same-store growth (SSSG) trends and updates on franchise and store openings. The briefing will also provide details on the full-year capital returns to shareholders, including the share repurchase amount of $360 million for the first half of 2025. Meanwhile, recent changes in China’s economic policy have positively impacted stocks with exposure to China, including Yum China. The shift towards more accommodating monetary and fiscal policies has led to increased optimism and gains for companies with business interests in the region.
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