Sysco Corporation (NYSE:SYY – Get Free Report)’s share price gapped down prior to trading on Tuesday. The stock had previously closed at $81.74, but opened at $77.61. Sysco shares last traded at $78.0830, with a volume of 1,355,813 shares traded.
Trending Headlines about Sysco
Here are the key news stories impacting Sysco this week:
- Positive Sentiment: Director Thomas Gerard Ondrof bought 2,500 shares at an average of $76.62, a potentially encouraging signal of confidence from an insider. SEC filing
- Neutral Sentiment: Sysco began its fourth annual Purpose Month, continuing its work to address food insecurity with Happy Day Brands. The announcement supports its community profile but offers no clear near-term financial impact. Purpose Month announcement
- Negative Sentiment: Citigroup lowered its price target to $84 from $87 and kept a neutral rating. JPMorgan also trimmed its target, to $92 from $95, reflecting a more cautious analyst outlook even though both targets remain above the cited share price. Citigroup rating information JPMorgan target update
- Negative Sentiment: Sysco’s first-quarter results matched EPS estimates but missed revenue expectations, and softer sales guidance raised concerns about near-term growth. The pending $29.1 billion Jetro Restaurant Depot acquisition adds uncertainty, including FTC clearance and potential cost or operating-income pressure. Revenue and guidance report Acquisition investigation notice
Analyst Upgrades and Downgrades
Several equities analysts recently commented on SYY shares. DA Davidson boosted their price objective on shares of Sysco from $89.00 to $91.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Guggenheim reiterated a “buy” rating and issued a $90.00 target price on shares of Sysco in a research note on Wednesday, September 16th. Morgan Stanley raised their price target on shares of Sysco from $88.00 to $91.00 and gave the company an “equal weight” rating in a report on Thursday, October 15th. Weiss Ratings lowered shares of Sysco from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. decreased their price target on shares of Sysco from $95.00 to $92.00 in a report on Wednesday. Eleven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $91.13.
View Our Latest Report on Sysco
Sysco Price Performance
The business’s 50 day moving average is $80.17 and its two-hundred day moving average is $80.51. The firm has a market capitalization of $36.96 billion, a PE ratio of 19.98, a P/E/G ratio of 2.08 and a beta of 0.66. The company has a debt-to-equity ratio of 3.18, a current ratio of 1.46 and a quick ratio of 0.77.
Sysco (NYSE:SYY – Get Free Report) last announced its earnings results on Tuesday, November 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.19. The business had revenue of $21.74 billion during the quarter, compared to analyst estimates of $22.02 billion. Sysco had a net margin of 2.12% and a return on equity of 79.24%. Sysco’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period in the previous year, the business posted $1.15 earnings per share. As a group, research analysts anticipate that Sysco Corporation will post 5.09 EPS for the current year.
Sysco Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 2nd were given a $0.55 dividend. The ex-dividend date was Friday, October 2nd. This represents a $2.20 annualized dividend and a yield of 2.9%. Sysco’s payout ratio is 60.11%.
Insiders Place Their Bets
In other Sysco news, EVP Ronald L. Phillips sold 7,350 shares of Sysco stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $83.61, for a total transaction of $614,533.50. Following the completion of the sale, the executive vice president owned 38,650 shares of the company’s stock, valued at $3,231,526.50. The trade was a 15.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Thomas Gerard Ondrof acquired 2,500 shares of the business’s stock in a transaction dated Wednesday, November 4th. The stock was purchased at an average price of $76.62 per share, with a total value of $191,550.00. Following the completion of the acquisition, the director directly owned 2,500 shares in the company, valued at approximately $191,550. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders sold 15,525 shares of company stock worth $1,299,736. 0.55% of the stock is owned by insiders.
Hedge Funds Weigh In On Sysco
Several institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Sysco during the second quarter valued at approximately $3,596,356,000. Bank of America Corp DE purchased a new stake in Sysco in the second quarter worth about $482,589,000. Dimensional Fund Advisors LP raised its stake in shares of Sysco by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,667,412 shares of the company’s stock worth $332,871,000 after buying an additional 59,685 shares during the period. Primecap Management Co. CA bought a new position in shares of Sysco in the second quarter worth about $313,503,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Sysco during the 2nd quarter valued at about $273,323,000. 83.41% of the stock is currently owned by institutional investors.
Sysco Company Profile
Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.
The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.
Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.
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