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

Key Points

• Wall Street Zen downgraded Sysco from “Buy” to “Hold.” Despite the downgrade, the broader analyst consensus remains “Moderate Buy,” with nine Buy, six Hold, and one Sell rating and an average price target of $90.42.
• Sysco shares opened at $81.38, down 3.1%, with a market capitalization of about $40.04 billion. The stock trades at a P/E ratio of 18.22 and has a 52-week range of $68.19 to $91.85.
• The company reported quarterly EPS of $1.53, exceeding estimates by $0.02, while revenue rose 4.7% year over year to $22.12 billion. Institutional investors own 83.41% of Sysco, while insiders have recently sold shares under a pre-arranged plan.

Sysco (NYSE:SYY - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also issued reports on SYY. Guggenheim restated a "buy" rating and set a $90.00 price target on shares of Sysco in a research note on Wednesday, September 16th. Weiss Ratings upgraded Sysco from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 15th. Melius Research lowered Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. reduced their target price on Sysco from $100.00 to $95.00 and set an "overweight" rating for the company in a research report on Tuesday, September 29th. Finally, Citigroup lifted their price target on shares of Sysco from $82.00 to $86.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Sysco presently has an average rating of "Moderate Buy" and a consensus price target of $90.42.

Sysco Stock Down 3.1%

SYY opened at $81.38 on Friday. Sysco has a one year low of $68.19 and a one year high of $91.85. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. The company has a market capitalization of $40.04 billion, a PE ratio of 18.22, a P/E/G ratio of 2.87 and a beta of 0.64. The stock's fifty day moving average is $80.49 and its 200-day moving average is $79.29.

Sysco (NYSE:SYY - Get Free Report) last announced 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 return on equity of 95.05% and a net margin of 2.08%. The business 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 posted $1.48 earnings per share. Sysco'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 analysts predict that Sysco will post 5.10 EPS for the current fiscal year.

Insider Activity

In other Sysco news, EVP Ronald Phillips sold 7,350 shares of the company's stock in a transaction 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 owned 38,650 shares in the company, valued at approximately $3,231,526.50. The trade was a 15.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible 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. Over the last 90 days, insiders have sold 15,525 shares of company stock valued at $1,299,736. 0.55% of the stock is currently owned by company insiders.

Institutional Trading of Sysco

A number of hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Sysco in the 2nd quarter valued at approximately $3,596,356,000. Bank of America Corp DE acquired a new position in Sysco during the second quarter valued at approximately $482,589,000. Dimensional Fund Advisors LP grew its stake in Sysco by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,667,412 shares of the company's stock valued at $332,871,000 after purchasing an additional 59,685 shares in the last quarter. Primecap Management Co. CA acquired a new stake in shares of Sysco in the 2nd quarter valued at approximately $313,503,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Sysco in the second quarter valued at $273,323,000. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Sysco Company Profile

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.

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