Baxter Bros Inc. Purchases New Position in Sysco Corporation $SYY

Key Points

• Baxter Bros Inc. initiated a Sysco position in the second quarter by purchasing 23,700 shares valued at approximately $1.98 million. Institutional investors collectively own 83.41% of Sysco’s outstanding stock.
• Sysco exceeded quarterly expectations, reporting $1.53 in EPS and $22.12 billion in revenue, with revenue up 4.7% year over year. The stock opened at $82.94, compared with a consensus analyst price target of $89.50.
• Analyst sentiment remains mixed: eight analysts rate Sysco a Buy, seven a Hold, and one a Sell, resulting in a consensus “Hold” rating. UBS raised its price target to $95, while Melius Research downgraded the stock to Sell.

Baxter Bros Inc. acquired a new position in Sysco Corporation (NYSE:SYY - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 23,700 shares of the company's stock, valued at approximately $1,981,000.

Other institutional investors have also added to or reduced their stakes in the company. Intech Investment Management LLC grew its stake in shares of Sysco by 53.1% in the first quarter. Intech Investment Management LLC now owns 22,310 shares of the company's stock worth $1,674,000 after acquiring an additional 7,742 shares during the period. Schnieders Capital Management LLC. raised its holdings in Sysco by 24.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company's stock worth $781,000 after purchasing an additional 2,000 shares during the period. NewEdge Advisors LLC lifted its position in Sysco by 62.4% during the second quarter. NewEdge Advisors LLC now owns 35,447 shares of the company's stock valued at $2,685,000 after purchasing an additional 13,616 shares in the last quarter. Sei Investments Co. lifted its position in Sysco by 14.2% during the second quarter. Sei Investments Co. now owns 344,504 shares of the company's stock valued at $26,092,000 after purchasing an additional 42,903 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its holdings in Sysco by 0.8% during the second quarter. Treasurer of the State of North Carolina now owns 226,648 shares of the company's stock valued at $17,166,000 after purchasing an additional 1,710 shares during the period. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Sysco Stock Performance

NYSE:SYY opened at $82.94 on Monday. The stock has a 50-day moving average price of $82.21 and a 200 day moving average price of $80.66. The stock has a market capitalization of $39.71 billion, a P/E ratio of 22.66, a P/E/G ratio of 2.84 and a beta of 0.64. Sysco Corporation has a 12-month low of $68.19 and a 12-month high of $91.85. The company has a current ratio of 1.28, a quick ratio of 0.77 and a debt-to-equity ratio of 4.62.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, topping analysts' consensus estimates of $1.51 by $0.02. Sysco had a return on equity of 95.05% and a net margin of 2.08%.The company had revenue of $22.12 billion for the quarter, compared to analysts' expectations of $21.95 billion. During the same period in the previous year, the firm earned $1.48 EPS. The firm'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. Equities research analysts forecast that Sysco Corporation will post 5.1 EPS for the current fiscal year.

Insider Buying and Selling at Sysco

In other news, EVP Ronald L. Phillips sold 6,285 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $83.94, for a total transaction of $527,562.90. Following the completion of the transaction, the executive vice president owned 39,970 shares in the company, valued at $3,355,081.80. This trade represents a 13.59% decrease in their ownership of the stock. The sale was disclosed in a document filed 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. Also, Director John M. Hinshaw bought 13,304 shares of Sysco stock in a transaction dated Tuesday, May 26th. The stock was purchased at an average cost of $75.17 per share, for a total transaction of $1,000,061.68. Following the completion of the acquisition, the director directly owned 40,200 shares of the company's stock, valued at approximately $3,021,834. The trade was a 49.46% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.56% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently commented on SYY shares. Melius Research downgraded Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Barclays cut their price objective on Sysco from $92.00 to $86.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Citigroup raised their target price 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. Piper Sandler lifted their price target on shares of Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Finally, UBS Group upped their price target on shares of Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Eight research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Sysco has a consensus rating of "Hold" and a consensus target price of $89.50.

Sysco Company Profile

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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