Traders Buy Shares of SYSCO (SYY) on Weakness Following Insider Selling

Traders purchased shares of SYSCO Co. (NYSE:SYY) on weakness during trading on Thursday after an insider sold shares in the company. $34.43 million flowed into the stock on the tick-up and $11.72 million flowed out of the stock on the tick-down, for a money net flow of $22.71 million into the stock. Of all stocks tracked, SYSCO had the 18th highest net in-flow for the day. SYSCO traded down ($0.13) for the day and closed at $61.22Specifically, CEO William J. Delaney III sold 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 18th. The stock was sold at an average price of $54.71, for a total value of $1,641,300.00. Following the transaction, the chief executive officer now directly owns 406,725 shares of the company’s stock, valued at approximately $22,251,924.75. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO William J. Delaney III sold 150,000 shares of the company’s stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $54.05, for a total value of $8,107,500.00. Following the completion of the transaction, the chief executive officer now directly owns 526,725 shares in the company, valued at $28,469,486.25. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 321,172 shares of company stock worth $18,233,905. 9.60% of the stock is currently owned by corporate insiders.

A number of equities analysts have issued reports on the company. Zacks Investment Research raised SYSCO from a “hold” rating to a “strong-buy” rating and set a $71.00 target price on the stock in a research report on Wednesday. Pivotal Research upped their price target on SYSCO from $53.00 to $60.00 and gave the company a “buy” rating in a research report on Tuesday, December 12th. BMO Capital Markets set a $66.00 price target on SYSCO and gave the company a “buy” rating in a research report on Friday, December 8th. Finally, Loop Capital upped their price target on SYSCO to $68.00 and gave the company a “buy” rating in a research report on Monday, December 11th. Six equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and an average price target of $59.55.

The company has a debt-to-equity ratio of 3.77, a quick ratio of 0.88 and a current ratio of 1.40. The stock has a market cap of $31,980.00, a PE ratio of 28.03, a PEG ratio of 2.64 and a beta of 0.53.

SYSCO (NYSE:SYY) last posted its quarterly earnings results on Monday, November 6th. The company reported $0.74 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.02. The business had revenue of $14.65 billion for the quarter, compared to analyst estimates of $14.43 billion. SYSCO had a return on equity of 58.47% and a net margin of 2.12%. The business’s revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.67 EPS. analysts expect that SYSCO Co. will post 2.78 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Friday, January 26th. Investors of record on Friday, January 5th will be given a dividend of $0.36 per share. This is a positive change from SYSCO’s previous quarterly dividend of $0.33. This represents a $1.44 annualized dividend and a dividend yield of 2.35%. The ex-dividend date of this dividend is Thursday, January 4th. SYSCO’s dividend payout ratio is currently 65.75%.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Blue Chip Partners Inc. grew its stake in SYSCO by 0.6% during the 2nd quarter. Blue Chip Partners Inc. now owns 2,967 shares of the company’s stock worth $149,000 after buying an additional 18 shares during the last quarter. Northwest Quadrant Wealth Management LLC grew its stake in SYSCO by 0.6% during the 2nd quarter. Northwest Quadrant Wealth Management LLC now owns 5,169 shares of the company’s stock worth $269,000 after buying an additional 29 shares during the last quarter. Keel Point LLC grew its stake in SYSCO by 0.8% during the 2nd quarter. Keel Point LLC now owns 5,782 shares of the company’s stock worth $291,000 after buying an additional 47 shares during the last quarter. First Interstate Bank grew its stake in SYSCO by 1.4% during the 2nd quarter. First Interstate Bank now owns 4,975 shares of the company’s stock worth $250,000 after buying an additional 67 shares during the last quarter. Finally, W.G. Shaheen & Associates DBA Whitney & Co grew its stake in SYSCO by 0.6% during the 2nd quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 17,800 shares of the company’s stock worth $896,000 after buying an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 80.07% of the company’s stock.

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About SYSCO

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States.

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