Sysco (NYSE:SYY) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sysco from “Buy” to “Hold.” Despite the downgrade, analysts overall maintain a “Moderate Buy” consensus, with nine Buy, six Hold, and one Sell rating and an average price target of $89.50.
• Sysco shares opened at $80.10, down 1.2%, with the stock trading between a 12-month range of $68.19 and $91.85.
• The company exceeded quarterly expectations, reporting $1.53 in adjusted earnings per share versus the $1.51 estimate and revenue of $22.12 billion, up 4.7% year over year.

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

SYY has been the subject of several other research reports. Weiss Ratings raised Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 19th. Citigroup lifted their target price on shares of Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. UBS Group increased their price target on shares of Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Melius Research lowered shares of Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Finally, Piper Sandler upped their price objective on shares of Sysco from $77.00 to $84.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Nine research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Sysco presently has a consensus rating of "Moderate Buy" and a consensus price target of $89.50.

Sysco Trading Down 1.2%

Shares of NYSE SYY opened at $80.10 on Friday. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62. Sysco has a 12 month low of $68.19 and a 12 month high of $91.85. The company has a market cap of $38.38 billion, a price-to-earnings ratio of 21.89, a P/E/G ratio of 2.73 and a beta of 0.63. The business has a fifty day simple moving average of $83.13 and a 200-day simple moving average of $80.33.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.02. The firm had revenue of $22.12 billion for the quarter, compared to analysts' expectations of $21.95 billion. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The company's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.48 EPS. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. Sell-side analysts predict that Sysco will post 5.12 EPS for the current year.

Insiders Place Their Bets

In other Sysco news, EVP Ronald Phillips sold 7,350 shares of the company's stock in a transaction dated 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 directly owned 38,650 shares in the company, valued at $3,231,526.50. This represents a 15.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 three months, insiders have sold 14,508 shares of company stock worth $1,215,250. 0.56% of the stock is owned by insiders.

Institutional Trading of Sysco

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System lifted its holdings in shares of Sysco by 10,045.8% during the second quarter. California State Teachers Retirement System now owns 63,555,151 shares of the company's stock worth $5,311,940,000 after buying an additional 62,928,735 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Sysco in the second quarter worth $3,596,356,000. Norges Bank bought a new position in Sysco during the fourth quarter worth $542,780,000. Bank of America Corp DE acquired a new position in Sysco during the 2nd quarter valued at $482,589,000. Finally, Wellington Management Group LLP raised its stake in Sysco by 3,977.1% during the 3rd quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company's stock valued at $387,935,000 after purchasing an additional 4,595,819 shares during the last quarter. Institutional investors and hedge funds own 83.41% of the company's stock.

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.

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