Cairn Investment Group Inc. Takes $5.58 Million Position in Sysco Corporation $SYY

Key Points

• Cairn Investment Group purchased 66,760 Sysco shares worth approximately $5.58 million, making the stock 2.4% of its portfolio. Institutional investors collectively own 83.41% of Sysco.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $89.50; targets range from $86 to $95, though Melius Research downgraded the stock to “sell.”
• Sysco exceeded quarterly expectations with $1.53 in EPS and $22.12 billion in revenue, while revenue rose 4.7% year over year. The company declared a quarterly dividend of $0.55 per share, yielding about 2.7% annually.

Cairn Investment Group Inc. purchased a new position in Sysco Corporation (NYSE:SYY - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 66,760 shares of the company's stock, valued at approximately $5,580,000. Sysco accounts for approximately 2.4% of Cairn Investment Group Inc.'s holdings, making the stock its 15th biggest position.

Other institutional investors also recently bought and sold shares of the company. Lloyd Advisory Services LLC. purchased a new stake in shares of Sysco in the 4th quarter valued at $25,000. Motiv8 Investments LLC acquired a new stake in shares of Sysco in the fourth quarter worth $25,000. Sunbelt Securities Inc. raised its holdings in shares of Sysco by 87.6% during the first quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock worth $26,000 after purchasing an additional 170 shares during the last quarter. Bard Associates Inc. acquired a new position in Sysco during the fourth quarter valued at $27,000. Finally, Elyxium Wealth LLC acquired a new position in Sysco during the fourth quarter valued at $28,000. 83.41% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have weighed in on SYY. Citigroup increased their price target on Sysco from $82.00 to $86.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Morgan Stanley boosted their price objective on Sysco from $84.00 to $88.00 and gave the company an "equal weight" rating in a report on Thursday, July 16th. UBS Group upped their target price on Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Melius Research cut Sysco from a "hold" rating to a "sell" rating in a research report on Tuesday, July 7th. Finally, Wall Street Zen raised Sysco from a "hold" rating to a "buy" rating in a report on Saturday. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Sysco has an average rating of "Moderate Buy" and a consensus price target of $89.50.

Sysco Stock Up 1.2%

SYY opened at $82.05 on Wednesday. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62. The company has a 50-day moving average price of $83.16 and a 200 day moving average price of $80.46. The company has a market cap of $39.31 billion, a PE ratio of 22.42, a price-to-earnings-growth ratio of 2.77 and a beta of 0.63.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate 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 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. Sell-side analysts expect that Sysco Corporation will post 5.12 earnings per share for the current fiscal year.

Sysco Announces Dividend

The company also recently declared 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 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Friday, October 2nd. Sysco's payout ratio is presently 60.11%.

Insider Buying and Selling

In related news, EVP Ronald L. Phillips sold 7,350 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $83.61, for a total value of $614,533.50. Following the completion of the transaction, the executive vice president directly owned 38,650 shares of the company's stock, valued at approximately $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 can be accessed through 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 14,508 shares of company stock valued at $1,215,250. 0.56% of the stock is currently owned by corporate insiders.

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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