Sysco (NYSE:SYY) Lowered to Hold Rating by Wall Street Zen

Wall Street Zen downgraded shares of Sysco (NYSE:SYY) from a buy rating to a hold rating in a research note issued to investors on Sunday morning,Wall Street Zen reports.

A number of other equities analysts have also weighed in on SYY. Morgan Stanley lifted their price objective on shares of Sysco from $84.00 to $88.00 and gave the company an “equal weight” rating in a research report on Thursday, July 16th. Melius Research cut shares of Sysco from a “hold” rating to a “sell” rating in a research note on Tuesday, July 7th. UBS Group lifted their target price on shares of Sysco from $90.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Citigroup increased their price target on shares of Sysco from $82.00 to $86.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Finally, Piper Sandler raised their price objective on shares of Sysco from $77.00 to $84.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $89.50.

Sysco Stock Performance

NYSE SYY opened at $80.10 on Friday. The firm has a market cap of $38.38 billion, a P/E ratio of 21.89, a P/E/G ratio of 2.73 and a beta of 0.63. Sysco has a 52-week low of $68.19 and a 52-week high of $91.85. The business’s 50-day moving average price is $83.13 and its 200 day moving average price is $80.26. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62.

Sysco (NYSE:SYY) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, beating the consensus estimate of $1.51 by $0.02. Sysco had a return on equity of 95.05% and a net margin of 2.08%.The firm had revenue of $22.12 billion during the quarter, compared to the consensus estimate of $21.95 billion. During the same period in the prior year, the business earned $1.48 EPS. The firm’s revenue was up 4.7% compared to the same quarter last year. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. On average, equities research analysts expect that Sysco will post 5.12 earnings per share for the current year.

Sysco Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 2nd will be given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, October 2nd. Sysco’s dividend payout ratio is presently 60.11%.

Insider Transactions at Sysco

In other news, EVP Ronald Phillips sold 7,350 shares of Sysco stock in a transaction that occurred on Friday, August 21st. The shares were 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 directly owned 38,650 shares in the company, valued at approximately $3,231,526.50. This trade represents a 15.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Insiders have sold 14,508 shares of company stock valued at $1,215,250 over the last three months. Company insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Sysco

Several hedge funds and other institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System grew its holdings in Sysco by 10,045.8% in the second quarter. California State Teachers Retirement System now owns 63,555,151 shares of the company’s stock valued at $5,311,940,000 after purchasing an additional 62,928,735 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of Sysco in the 2nd quarter worth about $3,596,356,000. State Street Corp grew its stake in Sysco by 0.9% in the 3rd quarter. State Street Corp now owns 26,669,576 shares of the company’s stock valued at $2,195,973,000 after acquiring an additional 246,542 shares during the last quarter. Geode Capital Management LLC increased its holdings in Sysco by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 12,728,692 shares of the company’s stock valued at $934,391,000 after acquiring an additional 131,659 shares in the last quarter. Finally, Norges Bank purchased a new position in Sysco during the 4th quarter valued at about $542,780,000. 83.41% of the stock is owned by institutional investors and hedge funds.

About Sysco

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.