Key Points
- Sysco EVP Ronald Phillips sold 960 shares at an average price of $83, generating $79,680. The sale was made under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards, leaving him with 49,852 shares.
- Sysco shares were trading down 4.6% at $79.67, while the company recently reported quarterly EPS of $1.53 and revenue of $22.12 billion, beating analyst expectations. The company also declared a quarterly dividend of $0.55, representing a 2.8% annualized yield.
- Analysts maintain a “Moderate Buy” consensus rating with an average price target of $89.50, although the stock faces dilution and execution concerns tied to its planned Jetro Restaurant Depot transaction and related share offering.
Sysco Corporation (NYSE:SYY - Get Free Report) EVP Ronald Phillips sold 960 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $83.00, for a total transaction of $79,680.00. Following the completion of the transaction, the executive vice president directly owned 49,852 shares of the company's stock, valued at $4,137,716. This represents a 1.89% decrease in their position. The transaction 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.
Sysco Trading Down 4.6%
NYSE SYY opened at $79.67 on Wednesday. The firm's 50 day moving average price is $82.76 and its two-hundred day moving average price is $79.86. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85. The stock has a market cap of $38.17 billion, a price-to-earnings ratio of 21.77, a PEG ratio of 2.87 and a beta of 0.63.
Sysco (NYSE:SYY - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.51 by $0.02. The company had revenue of $22.12 billion during the quarter, compared to analyst estimates of $21.95 billion. Sysco had a return on equity of 95.05% and a net margin of 2.08%.The company's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company 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. Equities analysts anticipate that Sysco Corporation will post 5.08 EPS for the current year.
Sysco Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 2nd will be paid a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Friday, October 2nd. Sysco's dividend payout ratio is currently 60.11%.
Hedge Funds Weigh In On Sysco
Several hedge funds have recently bought and sold shares of SYY. United Capital Financial Advisors LLC bought a new stake in Sysco during the 2nd quarter worth about $2,633,000. Rakuten Investment Management Inc. bought a new position in shares of Sysco in the second quarter worth about $6,523,000. Empowered Funds LLC acquired a new position in shares of Sysco during the second quarter worth approximately $9,370,000. Norges Bank acquired a new position in shares of Sysco during the fourth quarter worth approximately $542,780,000. Finally, Banque Cantonale Vaudoise grew its stake in shares of Sysco by 301.9% during the first quarter. Banque Cantonale Vaudoise now owns 16,828 shares of the company's stock valued at $1,200,000 after purchasing an additional 12,641 shares during the last quarter. 83.41% of the stock is owned by institutional investors and hedge funds.
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
Analyst Ratings Changes
A number of equities analysts have recently weighed in on SYY shares. Melius Research downgraded Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. Piper Sandler raised their price target on shares of Sysco from $77.00 to $84.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. UBS Group boosted their price objective on shares of Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Morgan Stanley upped their price objective on shares of Sysco from $84.00 to $88.00 and gave the company an "equal weight" rating in a research note on Thursday, July 16th. Finally, Citigroup increased their target price on shares of Sysco from $82.00 to $86.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $89.50.
Check Out Our Latest Stock Analysis on Sysco
Sysco Company Profile
(
Get Free Report)
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.
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