Sysco (NYSE:SYY) Cut to “Hold” at Wall Street Zen

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

A number of other equities research analysts have also recently commented on the stock. UBS Group raised their price objective on shares of Sysco from $90.00 to $95.00 and gave the stock a “buy” rating in a research note on Wednesday, January 28th. BMO Capital Markets reissued an “outperform” rating on shares of Sysco in a report on Wednesday, January 28th. Morgan Stanley cut their price objective on shares of Sysco from $88.00 to $85.00 and set an “equal weight” rating for the company in a report on Tuesday, January 20th. Weiss Ratings upgraded shares of Sysco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, February 24th. Finally, Truist Financial raised their target price on Sysco from $90.00 to $94.00 and gave the company a “buy” rating in a research report on Wednesday, January 28th. Ten investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $90.31.

Sysco Stock Performance

Shares of SYY stock opened at $84.30 on Friday. The stock has a market cap of $40.37 billion, a PE ratio of 22.66, a price-to-earnings-growth ratio of 2.63 and a beta of 0.58. The business has a 50-day simple moving average of $82.75 and a 200-day simple moving average of $79.40. The company has a quick ratio of 0.75, a current ratio of 1.30 and a debt-to-equity ratio of 5.45. Sysco has a 52-week low of $67.12 and a 52-week high of $91.85.

Sysco (NYSE:SYY) last posted its earnings results on Tuesday, January 27th. The company reported $0.99 EPS for the quarter, topping the consensus estimate of $0.98 by $0.01. The firm had revenue of $20.76 billion for the quarter, compared to analyst estimates of $20.80 billion. Sysco had a return on equity of 109.21% and a net margin of 2.17%.Sysco’s revenue for the quarter was up 3.0% compared to the same quarter last year. During the same period last year, the company earned $0.93 earnings per share. Sysco has set its FY 2026 guidance at 4.600-4.600 EPS. On average, equities analysts expect that Sysco will post 4.58 EPS for the current year.

Sysco Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Thursday, April 2nd will be issued a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Thursday, April 2nd. Sysco’s dividend payout ratio (DPR) is presently 58.06%.

Insider Transactions at Sysco

In related news, Director Sheila Talton sold 2,801 shares of Sysco stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $82.99, for a total value of $232,454.99. Following the sale, the director directly owned 12,868 shares in the company, valued at approximately $1,067,915.32. The trade was a 17.88% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Ronald L. Phillips sold 5,601 shares of the business’s stock in a transaction that occurred on Tuesday, January 27th. The stock was sold at an average price of $81.00, for a total value of $453,681.00. Following the sale, the executive vice president owned 35,965 shares of the company’s stock, valued at approximately $2,913,165. This trade represents a 13.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.56% of the stock is owned by insiders.

Institutional Trading of Sysco

A number of institutional investors have recently made changes to their positions in SYY. Intech Investment Management LLC boosted its stake in Sysco by 53.1% during the 1st quarter. Intech Investment Management LLC now owns 22,310 shares of the company’s stock worth $1,674,000 after purchasing an additional 7,742 shares during the last quarter. Schnieders Capital Management LLC. lifted its stake in shares of Sysco by 24.1% in the second quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company’s stock worth $781,000 after buying an additional 2,000 shares in the last quarter. Atlantic Union Bankshares Corp lifted its stake in shares of Sysco by 268.4% in the second quarter. Atlantic Union Bankshares Corp now owns 10,606 shares of the company’s stock worth $803,000 after buying an additional 7,727 shares in the last quarter. Vestmark Advisory Solutions Inc. acquired a new position in Sysco during the second quarter worth about $1,646,000. Finally, KCM Investment Advisors LLC raised its holdings in Sysco by 3.0% in the 2nd quarter. KCM Investment Advisors LLC now owns 11,074 shares of the company’s stock valued at $839,000 after acquiring an additional 323 shares during the last quarter. 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.