Beacon Pointe Advisors LLC Takes Position in Sysco Corporation $SYY

Key Points

• Beacon Pointe Advisors purchased 27,679 Sysco shares in the second quarter, valued at approximately $2.31 million. Hedge funds and other institutional investors collectively own 83.41% of the company.
• Sysco’s latest quarterly results exceeded expectations, with adjusted earnings of $1.53 per share and revenue of $22.12 billion, up 4.7% year over year. The company also declared a quarterly dividend of $0.55 per share, representing a 2.7% annualized yield.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $89.50, although one firm downgraded the stock to “sell.” Shares opened at $81.95, while an executive recently sold shares under a pre-arranged plan to cover tax obligations.

Beacon Pointe Advisors LLC purchased a new position in Sysco Corporation (NYSE:SYY - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 27,679 shares of the company's stock, valued at approximately $2,313,000.

Several other hedge funds have also recently made changes to their positions in SYY. Lloyd Advisory Services LLC. purchased a new stake in Sysco in the fourth quarter worth approximately $25,000. Motiv8 Investments LLC purchased a new stake in Sysco during the 4th quarter valued at $25,000. Sunbelt Securities Inc. raised its stake in Sysco by 87.6% during the 1st quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock valued at $26,000 after buying an additional 170 shares during the last quarter. Torren Management LLC bought a new position in shares of Sysco during the 4th quarter valued at $27,000. Finally, Bard Associates Inc. bought a new position in shares of Sysco during the 4th quarter valued at $27,000. 83.41% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Sysco

In other news, EVP Ronald L. Phillips sold 7,350 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $83.61, for a total transaction of $614,533.50. Following the completion of 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 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. Over the last ninety days, insiders have sold 14,508 shares of company stock worth $1,215,250. 0.56% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. UBS Group lifted their price objective on Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a report 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 report on Thursday, July 16th. Weiss Ratings upgraded Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 19th. Melius Research cut shares of Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Finally, Wall Street Zen raised shares of Sysco from a "hold" rating to a "buy" rating in a report on Saturday. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $89.50.

Sysco Trading Down 0.6%

Shares of SYY opened at $81.95 on Friday. The firm has a market cap of $39.26 billion, a P/E ratio of 22.39, a price-to-earnings-growth ratio of 2.80 and a beta of 0.64. The company has a debt-to-equity ratio of 4.62, a current ratio of 1.28 and a quick ratio of 0.77. Sysco Corporation has a 1 year low of $68.19 and a 1 year high of $91.85. The company has a 50 day simple moving average of $83.05 and a two-hundred day simple moving average of $80.59.

Sysco (NYSE:SYY - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.51 by $0.02. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The firm had revenue of $22.12 billion for the quarter, compared to the consensus estimate of $21.95 billion. During the same quarter in the previous year, the firm earned $1.48 earnings per share. The company's quarterly 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 expect that Sysco Corporation will post 5.12 earnings per share for the current fiscal year.

Sysco Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 2nd will be paid a $0.55 dividend. The ex-dividend date is Friday, October 2nd. This represents a $2.20 annualized dividend and a yield of 2.7%. Sysco's payout ratio is presently 60.11%.

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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