Capital Research Global Investors Acquires 46,040 Shares of Sysco Corporation $SYY

Key Points

• Capital Research Global Investors increased its stake in Sysco by 46,040 shares in Q3, bringing its holdings to 18,360,707 shares — a 3.83% stake valued at about $1.51 billion.
• Sysco reported Q results of $0.99 EPS (vs. $0.98 expected) on $20.76 billion of revenue (slightly below consensus) and set FY2026 guidance at 4.600 EPS, with analysts forecasting roughly 4.58 EPS for the year.
• Analysts assign Sysco an average rating of "Moderate Buy" with a $90.31 average price target (10 Buys, 5 Holds); the company has a $40.5B market cap and pays a quarterly dividend of $0.54 (annualized $2.16, ~2.6% yield, 58% payout ratio).

Capital Research Global Investors raised its stake in Sysco Corporation (NYSE:SYY - Free Report) by 0.3% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 18,360,707 shares of the company's stock after purchasing an additional 46,040 shares during the period. Capital Research Global Investors owned 3.83% of Sysco worth $1,511,821,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in shares of Sysco by 2.0% during the second quarter. Vanguard Group Inc. now owns 62,691,177 shares of the company's stock worth $4,748,230,000 after purchasing an additional 1,226,381 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Sysco by 1.5% in the 2nd quarter. Geode Capital Management LLC now owns 12,551,872 shares of the company's stock valued at $946,694,000 after purchasing an additional 183,179 shares in the last quarter. Norges Bank acquired a new stake in shares of Sysco in the second quarter valued at about $493,686,000. Charles Schwab Investment Management Inc. lifted its stake in Sysco by 0.9% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 3,131,931 shares of the company's stock worth $237,212,000 after purchasing an additional 27,693 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its holdings in shares of Sysco by 12.0% in the second quarter. Ameriprise Financial Inc. now owns 2,639,931 shares of the company's stock valued at $201,076,000 after purchasing an additional 283,706 shares during the last quarter. Hedge funds and other institutional investors own 83.41% of the company's stock.

Analyst Ratings Changes

A number of research firms recently weighed in on SYY. BMO Capital Markets reaffirmed an "outperform" rating on shares of Sysco in a research report on Wednesday, January 28th. Morgan Stanley cut their price target on Sysco from $88.00 to $85.00 and set an "equal weight" rating on the stock in a research report on Tuesday, January 20th. Piper Sandler raised their price target on Sysco from $80.00 to $83.00 and gave the company a "neutral" rating in a research report on Wednesday, January 28th. Wells Fargo & Company upped their price objective on Sysco from $92.00 to $100.00 and gave the company an "overweight" rating in a research report on Thursday, February 19th. Finally, Citigroup boosted their price target on Sysco from $81.00 to $88.00 and gave the company a "neutral" rating in a research report on Wednesday, January 28th. Ten analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Sysco presently has an average rating of "Moderate Buy" and an average price target of $90.31.

Sysco Stock Performance

NYSE:SYY opened at $84.64 on Tuesday. The firm has a market capitalization of $40.54 billion, a PE ratio of 22.75, a price-to-earnings-growth ratio of 2.65 and a beta of 0.58. Sysco Corporation has a 12-month low of $67.12 and a 12-month high of $91.85. The company has a quick ratio of 0.75, a current ratio of 1.30 and a debt-to-equity ratio of 5.45. The firm has a 50-day moving average price of $82.55 and a 200 day moving average price of $79.38.

Sysco (NYSE:SYY - Get Free Report) last issued its earnings results on Tuesday, January 27th. The company reported $0.99 EPS for the quarter, beating the consensus estimate of $0.98 by $0.01. Sysco had a net margin of 2.17% and a return on equity of 109.21%. The firm had revenue of $20.76 billion during the quarter, compared to the consensus estimate of $20.80 billion. During the same quarter in the prior year, the firm earned $0.93 earnings per share. The business's quarterly revenue was up 3.0% on a year-over-year basis. Sysco has set its FY 2026 guidance at 4.600-4.600 EPS. Research analysts anticipate that Sysco Corporation will post 4.58 earnings per share for the current fiscal year.

Sysco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Thursday, April 2nd will be issued a $0.54 dividend. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.6%. Sysco's dividend payout ratio is 58.06%.

Insider Buying and Selling

In other Sysco news, Director Sheila Talton sold 2,801 shares of the company's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $82.99, for a total value of $232,454.99. Following the completion of the transaction, the director owned 12,868 shares of the company's stock, valued at $1,067,915.32. This represents a 17.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Ronald L. Phillips sold 5,601 shares of the stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $81.00, for a total value of $453,681.00. Following the sale, the executive vice president owned 35,965 shares of the company's stock, valued at approximately $2,913,165. The trade was a 13.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.56% of the company's stock.

Sysco 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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