Sysco (NYSE:SYY) EVP Ronald Phillips Sells 960 Shares

Sysco Corporation (NYSE:SYY) EVP Ronald Phillips sold 960 shares of the business’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $83.00, for a total transaction of $79,680.00. Following the sale, the executive vice president owned 49,852 shares in the company, valued at $4,137,716. This trade represents a 1.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through 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.

Sysco Trading Down 4.6%

Shares of NYSE:SYY opened at $79.67 on Wednesday. The company has a 50 day moving average of $82.76 and a 200-day moving average of $79.86. The company has a current ratio of 1.28, a quick ratio of 0.77 and a debt-to-equity ratio of 4.62. The firm has a market cap of $38.17 billion, a P/E ratio of 21.77, a P/E/G ratio of 2.87 and a beta of 0.63. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85.

Sysco (NYSE:SYY) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, beating analysts’ consensus estimates of $1.51 by $0.02. The business had revenue of $22.12 billion for the quarter, compared to analyst estimates of $21.95 billion. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The business’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter last year, the business earned $1.48 earnings per share. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. As a group, analysts anticipate that Sysco Corporation will post 5.08 earnings per share for the current fiscal year.

Sysco Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd will be given a dividend of $0.55 per share. The ex-dividend date is Friday, October 2nd. This represents a $2.20 annualized dividend and a dividend yield of 2.8%. Sysco’s dividend payout ratio (DPR) is 60.11%.

Sysco News Summary

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: The approximately $1 billion offering is expected to provide funding for Sysco’s planned Jetro Restaurant Depot transaction, potentially supporting the company’s long-term growth and expansion in foodservice distribution. Sysco launches $1bn share sale to help fund Jetro deal
• Positive Sentiment: Sysco was also highlighted as a defensive-style stock, reflecting the relatively steady demand typically associated with food distribution during periods of market volatility. 3 Defensive-Styled Stocks to Help Weather Volatility
• Neutral Sentiment: Executive Vice President Ronald Phillips sold 1,017 shares in two transactions for approximately $84,486. Both sales were conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards, reducing their significance as a discretionary bearish signal. SEC insider transaction filing
• Negative Sentiment: Sysco priced 12,345,679 new common shares at $81 each, with the offering expected to close September 16. The issuance will dilute existing shareholders and likely contributed to selling pressure, particularly because the deal was priced below recent trading levels. Sysco Announces Pricing of Common Stock Offering
• Negative Sentiment: The stock underperformed its competitors as investors focused on the near-term dilution and execution risks surrounding the Jetro Restaurant Depot merger. Sysco Corp. stock underperforms Tuesday when compared to competitors

Hedge Funds Weigh In On Sysco

A number of hedge funds have recently modified their holdings of the stock. Sequoia Financial Advisors LLC lifted its holdings in shares of Sysco by 7.8% during the second quarter. Sequoia Financial Advisors LLC now owns 32,097 shares of the company’s stock valued at $2,683,000 after purchasing an additional 2,314 shares during the last quarter. Tidal Investments LLC increased its stake in Sysco by 27.6% in the 2nd quarter. Tidal Investments LLC now owns 138,807 shares of the company’s stock worth $11,601,000 after purchasing an additional 29,999 shares in the last quarter. National Pension Service increased its stake in Sysco by 5.9% in the 2nd quarter. National Pension Service now owns 911,016 shares of the company’s stock worth $76,143,000 after purchasing an additional 50,845 shares in the last quarter. BlueCrest Capital Management Ltd acquired a new stake in Sysco during the 2nd quarter worth about $418,000. Finally, Cidel Asset Management Inc. raised its holdings in Sysco by 6.3% during the 2nd quarter. Cidel Asset Management Inc. now owns 4,600 shares of the company’s stock worth $384,000 after buying an additional 271 shares during the period. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have recently weighed in on SYY shares. UBS Group upped their price objective on Sysco from $90.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Wall Street Zen cut shares of Sysco from a “buy” rating to a “hold” rating in a research report on Sunday, September 6th. Citigroup upped their price target on shares of Sysco from $82.00 to $86.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Morgan Stanley raised 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. Finally, Piper Sandler lifted their price objective on shares of Sysco from $77.00 to $84.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 5th. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $89.50.

About Sysco

Sysco Corporation (NYSE:SYY) is a global foodservice distributor that supplies restaurants, health care and educational institutions, hospitality businesses, government facilities, and other customers. Its product portfolio includes fresh and frozen foods, meat and seafood, dairy products, produce, pantry staples, beverages, and specialty items, along with nonfood products such as kitchen equipment, cleaning supplies, and disposable serving products.

In addition to distribution, Sysco provides services designed to support foodservice operators, including menu planning, culinary consulting, merchandising assistance, supply-chain solutions, and business-management resources.