Sysco Corporation (NYSE:SYY) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Sysco, with nine buys, six holds, and one sell among 16 analysts. The average 12-month price target is $89.50, above the stock’s reported $78.50 price.
• Sysco exceeded quarterly expectations, reporting $1.53 in EPS versus the $1.51 consensus and $22.12 billion in revenue, up 4.7% year over year. The company also issued fiscal 2027 EPS guidance of $5.025–$5.117.
• Sysco declared a quarterly dividend of $0.55 per share, or $2.20 annually, representing a 2.8% yield. Institutional investors own 83.41% of the company, while recent insider activity primarily consisted of sales.

Shares of Sysco Corporation (NYSE:SYY - Get Free Report) have been given an average recommendation of "Moderate Buy" by the sixteen research firms that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and nine have issued a buy rating on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $89.50.

A number of analysts recently issued reports on the stock. Guggenheim reissued a "buy" rating and set a $90.00 price target on shares of Sysco in a report on Wednesday, September 16th. Piper Sandler lifted their price objective on shares of Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a report 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. Wall Street Zen cut Sysco from a "buy" rating to a "hold" rating in a research report on Sunday, September 6th. Finally, Citigroup lifted their price target on Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th.

Insider Buying and Selling at Sysco

In other news, EVP Ronald Phillips sold 7,350 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $83.61, for a total transaction of $614,533.50. Following the transaction, the executive vice president owned 38,650 shares in the company, valued at $3,231,526.50. This trade represents a 15.98% decrease in their position. The sale was disclosed in a filing with the SEC, 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 sold 15,525 shares of company stock worth $1,299,736. Corporate insiders own 0.56% of the company's stock.

Hedge Funds Weigh In On Sysco

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of Sysco during the 2nd quarter worth about $3,596,356,000. Geode Capital Management LLC increased its stake in Sysco by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 12,728,692 shares of the company's stock worth $934,391,000 after buying an additional 131,659 shares in the last quarter. Norges Bank acquired a new position in shares of Sysco during the fourth quarter valued at approximately $542,780,000. Bank of America Corp DE acquired a new position in shares of Sysco during the second quarter valued at approximately $482,589,000. Finally, Goldman Sachs Group Inc. lifted its position in shares of Sysco by 45.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 5,651,682 shares of the company's stock valued at $416,472,000 after acquiring an additional 1,754,306 shares in the last quarter. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Sysco Stock Performance

NYSE SYY opened at $78.50 on Tuesday. The firm has a market capitalization of $37.65 billion, a P/E ratio of 21.45, a PEG ratio of 2.72 and a beta of 0.63. The stock has a 50-day simple moving average of $82.42 and a two-hundred day simple moving average of $79.56. 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 has a fifty-two week low of $68.19 and a fifty-two week high of $91.85.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.51 by $0.02. The business had revenue of $22.12 billion for 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 business's quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm 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. On average, equities analysts forecast that Sysco will post 5.07 earnings per share for the current year.

Sysco Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd will be given a $0.55 dividend. The ex-dividend date is Friday, October 2nd. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.8%. Sysco's payout ratio is 60.11%.

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.

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