Canada Pension Plan Investment Board Lowers Holdings in Sysco Corporation $SYY

Key Points

• Canada Pension Plan Investment Board has reduced its stake in Sysco Corporation by 58.3%, now owning 428,607 shares valued at approximately $32.2 million.
• Sysco reported a Q2 EPS of $1.48, exceeding analysts' expectations, with revenues reaching $21.14 billion, marking a 2.8% increase year-over-year.
• The company declared a quarterly dividend of $0.54 per share, representing a 2.7% yield and a payout ratio of 57.91%.

Canada Pension Plan Investment Board decreased its position in Sysco Corporation (NYSE:SYY - Free Report) by 58.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 428,607 shares of the company's stock after selling 599,441 shares during the period. Canada Pension Plan Investment Board owned approximately 0.09% of Sysco worth $32,163,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Rialto Wealth Management LLC increased its stake in Sysco by 188.7% in the first quarter. Rialto Wealth Management LLC now owns 332 shares of the company's stock valued at $25,000 after purchasing an additional 217 shares in the last quarter. Golden State Wealth Management LLC increased its stake in Sysco by 48.4% in the first quarter. Golden State Wealth Management LLC now owns 429 shares of the company's stock valued at $32,000 after purchasing an additional 140 shares in the last quarter. N.E.W. Advisory Services LLC bought a new stake in Sysco in the first quarter valued at $33,000. Capital A Wealth Management LLC bought a new stake in Sysco in the fourth quarter valued at $34,000. Finally, Cheviot Value Management LLC bought a new stake in Sysco in the first quarter valued at $34,000. 83.41% of the stock is owned by institutional investors.

Analysts Set New Price Targets

SYY has been the subject of several recent research reports. Wells Fargo & Company set a $88.00 target price on shares of Sysco and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Morgan Stanley boosted their target price on shares of Sysco from $72.00 to $77.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Barclays upped their price objective on shares of Sysco from $77.00 to $82.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Truist Financial upped their price objective on shares of Sysco from $81.00 to $90.00 and gave the stock a "buy" rating in a research report on Wednesday, July 30th. Finally, Guggenheim upped their price objective on shares of Sysco from $85.00 to $87.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Ten analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $85.69.

Insider Activity at Sysco

In related news, EVP Ronald L. Phillips sold 37,606 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $81.00, for a total value of $3,046,086.00. Following the completion of the transaction, the executive vice president directly owned 30,235 shares of the company's stock, valued at approximately $2,449,035. This trade represents a 55.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Greg D. Bertrand sold 40,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $80.00, for a total transaction of $3,200,000.00. Following the completion of the transaction, the executive vice president directly owned 56,304 shares of the company's stock, valued at approximately $4,504,320. This trade represents a 41.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 91,377 shares of company stock valued at $7,361,490. 0.54% of the stock is owned by insiders.

Sysco Stock Performance

SYY traded down $0.06 during midday trading on Friday, reaching $82.45. The company had a trading volume of 2,673,400 shares, compared to its average volume of 3,283,735. The company has a debt-to-equity ratio of 6.75, a quick ratio of 0.70 and a current ratio of 1.21. The stock has a market cap of $39.97 billion, a PE ratio of 22.11, a P/E/G ratio of 2.51 and a beta of 0.80. Sysco Corporation has a 12-month low of $67.12 and a 12-month high of $83.17. The business has a 50-day moving average price of $79.15 and a two-hundred day moving average price of $74.97.

Sysco (NYSE:SYY - Get Free Report) last released its earnings results on Tuesday, July 29th. The company reported $1.48 earnings per share for the quarter, beating analysts' consensus estimates of $1.39 by $0.09. The firm had revenue of $21.14 billion for the quarter, compared to analysts' expectations of $21.01 billion. Sysco had a net margin of 2.25% and a return on equity of 109.52%. The company's quarterly revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the company earned $1.39 earnings per share. Sysco has set its FY 2026 guidance at 4.500-4.600 EPS. On average, sell-side analysts expect that Sysco Corporation will post 4.58 earnings per share for the current fiscal year.

Sysco Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 3rd will be issued a $0.54 dividend. The ex-dividend date of this dividend is Friday, October 3rd. This represents a $2.16 annualized dividend and a yield of 2.6%. Sysco's dividend payout ratio (DPR) is 57.91%.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.