Sysco (NYSE:SYY) EVP Sells 960 Shares

Sysco Corporation (NYSE:SYY) EVP Ronald Phillips sold 960 shares of the company’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 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 Securities & Exchange Commission, 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 Price Performance

Sysco stock traded down $3.87 during trading hours on Tuesday, reaching $79.67. 13,660,925 shares of the stock were exchanged, compared to its average volume of 4,045,529. The company has a current ratio of 1.28, a quick ratio of 0.77 and a debt-to-equity ratio of 4.62. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85. The company has a market cap of $38.17 billion, a P/E ratio of 21.77, a price-to-earnings-growth ratio of 2.86 and a beta of 0.63. The stock has a 50 day moving average of $82.86 and a two-hundred day moving average of $79.93.

Sysco (NYSE:SYY) last issued its earnings results 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 net margin of 2.08% and a return on equity of 95.05%. The company had revenue of $22.12 billion during the quarter, compared to analysts’ expectations of $21.95 billion. During the same period in the previous year, the company earned $1.48 EPS. The business’s revenue for the quarter 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. Equities analysts expect that Sysco Corporation will post 5.08 EPS for the current fiscal year.

Sysco Announces Dividend

The company also recently disclosed 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 2.8%. The ex-dividend date is Friday, October 2nd. Sysco’s payout ratio is currently 60.11%.

Analysts Set New Price Targets

A number of brokerages have weighed in on SYY. UBS Group raised their target price on Sysco from $90.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Piper Sandler boosted their price target on Sysco from $77.00 to $84.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Weiss Ratings upgraded Sysco from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday. Morgan Stanley raised their price objective on Sysco from $84.00 to $88.00 and gave the company an “equal weight” rating in a research note on Thursday, July 16th. Finally, Wall Street Zen cut Sysco from a “buy” rating to a “hold” rating in a research report on Sunday, September 6th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Sysco presently has a consensus rating of “Moderate Buy” and a consensus price target of $89.50.

Key Sysco News

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: The offering is expected to provide approximately $1 billion of capital to support Sysco’s Jetro Restaurant Depot transaction, potentially strengthening its position in restaurant distribution and expanding its long-term growth platform. Sysco launches $1bn share sale to help fund Jetro deal
• Positive Sentiment: Sysco priced the offering at $81 per share, with 12,345,679 shares expected to be issued. The transaction is scheduled to close September 16, subject to customary conditions, giving the company a defined source of acquisition funding. Sysco Announces Pricing of Common Stock Offering
• Neutral Sentiment: Analysts and financial media continue to characterize Sysco as a defensive stock because foodservice demand tends to be relatively consistent during periods of market volatility. That may provide some downside support, although it does not offset the immediate financing concerns. 3 Defensive-Styled Stocks to Help Weather Volatility
• Negative Sentiment: The new shares will dilute existing shareholders’ ownership and earnings per share. The stock offering was the primary catalyst for the weaker trading performance and caused SYY to underperform some competitors. Sysco Planning $1 Billion Share Offering
• Negative Sentiment: Investors are also weighing execution and integration risks associated with the Jetro Restaurant Depot merger. While the deal could expand Sysco’s reach, the equity financing signals that part of the transaction will be funded through newly issued stock rather than existing resources. Sysco Advances Jetro Restaurant Depot Merger Disclosure Process

Institutional Trading of Sysco

A number of hedge funds have recently added to or reduced their stakes in the stock. Lloyd Advisory Services LLC. acquired a new stake in shares of Sysco during the 4th quarter valued at $25,000. Sunbelt Securities Inc. increased its holdings in Sysco by 87.6% in the 1st quarter. Sunbelt Securities Inc. now owns 364 shares of the company’s stock worth $26,000 after purchasing an additional 170 shares in the last quarter. Bard Associates Inc. bought a new position in Sysco in the fourth quarter valued at about $27,000. Elyxium Wealth LLC acquired a new stake in shares of Sysco during the fourth quarter valued at about $28,000. Finally, N.E.W. Advisory Services LLC acquired a new stake in shares of Sysco during the second quarter valued at about $29,000. Institutional investors and hedge funds own 83.41% of the company’s stock.

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.