Bank of America Corp DE Makes New $482.59 Million Investment in Sysco Corporation $SYY

Key Points

• Bank of America acquired 5.77 million Sysco shares worth approximately $482.6 million, representing about 1.21% of the foodservice distributor. Institutional investors collectively own 83.41% of Sysco.
• Sysco recently priced an offering of 12.35 million new shares at $81 each to help fund its planned Jetro Restaurant Depot transaction, creating near-term dilution and execution risks for existing shareholders.
• Sysco exceeded quarterly expectations with $1.53 in EPS and $22.12 billion in revenue, while maintaining a $0.55 quarterly dividend. Analysts give the stock a “Moderate Buy” consensus rating with an average price target of $89.50.

Bank of America Corp DE bought a new position in shares of Sysco Corporation (NYSE:SYY - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 5,773,981 shares of the company's stock, valued at approximately $482,589,000. Bank of America Corp DE owned approximately 1.21% of Sysco at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Lloyd Advisory Services LLC. bought a new position in shares of Sysco during the 4th quarter worth approximately $25,000. Sunbelt Securities Inc. raised its stake in shares of Sysco by 87.6% during the 1st quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock worth $26,000 after purchasing an additional 170 shares during the period. Bard Associates Inc. bought a new position in shares of Sysco in the fourth quarter worth $27,000. Elyxium Wealth LLC purchased a new position in shares of Sysco during the fourth quarter worth about $28,000. Finally, N.E.W. Advisory Services LLC bought a new position in shares of Sysco during the 2nd quarter valued at $29,000. Institutional investors and hedge funds own 83.41% of the company's stock.

Sysco News Roundup

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: The approximately $1 billion offering is expected to provide funding for Sysco’s planned Jetro Restaurant Depot transaction, potentially supporting the company’s long-term growth and expansion in foodservice distribution. Sysco launches $1bn share sale to help fund Jetro deal
• Positive Sentiment: Sysco was also highlighted as a defensive-style stock, reflecting the relatively steady demand typically associated with food distribution during periods of market volatility. 3 Defensive-Styled Stocks to Help Weather Volatility
• Neutral Sentiment: Executive Vice President Ronald Phillips sold 1,017 shares in two transactions for approximately $84,486. Both sales were conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards, reducing their significance as a discretionary bearish signal. SEC insider transaction filing
• Negative Sentiment: Sysco priced 12,345,679 new common shares at $81 each, with the offering expected to close September 16. The issuance will dilute existing shareholders and likely contributed to selling pressure, particularly because the deal was priced below recent trading levels. Sysco Announces Pricing of Common Stock Offering
• Negative Sentiment: The stock underperformed its competitors as investors focused on the near-term dilution and execution risks surrounding the Jetro Restaurant Depot merger. Sysco Corp. stock underperforms Tuesday when compared to competitors

Sysco Price Performance

Shares of NYSE SYY opened at $79.67 on Wednesday. Sysco Corporation has a fifty-two week low of $68.19 and a fifty-two week high of $91.85. The company has a 50 day simple moving average of $82.76 and a two-hundred day simple moving average of $79.86. The company has a market capitalization of $38.17 billion, a price-to-earnings ratio of 21.77, a P/E/G ratio of 2.87 and a beta of 0.63. 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 (NYSE:SYY - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter in the previous year, the business posted $1.48 EPS. 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. Analysts expect that Sysco Corporation will post 5.08 EPS for the current fiscal year.

Sysco Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on SYY. UBS Group upped their price objective on shares of Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Morgan Stanley raised their target price on Sysco from $84.00 to $88.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 16th. Wall Street Zen downgraded Sysco from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Citigroup upped their price target on Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Finally, Piper Sandler increased their price objective on 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 assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Sysco currently has a consensus rating of "Moderate Buy" and an average price target of $89.50.

Insiders Place Their Bets

In other 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 owned 38,650 shares of the company's stock, valued at $3,231,526.50. This represents a 15.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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. Insiders sold a total of 15,525 shares of company stock valued at $1,299,736 over the last 90 days. 0.56% of the stock is currently owned by corporate insiders.

Sysco Company Profile

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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