Diversify Advisory Services LLC Buys New Stake in Sysco Corporation $SYY

Key Points

• Diversify Advisory Services LLC purchased 13,575 Sysco shares during the second quarter, valued at approximately $1.14 million. Institutional investors and hedge funds collectively own 83.41% of the company.
• Sysco exceeded quarterly expectations, reporting $1.53 in EPS versus the $1.51 consensus and $22.12 billion in revenue, up 4.7% year over year. Shares opened at $82.58, with a market capitalization of about $39.53 billion.
• Analyst sentiment remains mixed, with eight Buy, seven Hold, and one Sell rating; the stock carries an overall “Hold” consensus and an average price target of $89.50.

Diversify Advisory Services LLC bought a new stake in Sysco Corporation (NYSE:SYY - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 13,575 shares of the company's stock, valued at approximately $1,141,000.

A number of other large investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of Sysco by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 62,305,343 shares of the company's stock valued at $4,591,281,000 after buying an additional 814,270 shares in the last quarter. BlackRock Inc. acquired a new position in Sysco during the 2nd quarter worth about $3,596,356,000. State Street Corp boosted its holdings in Sysco by 0.9% during the 3rd quarter. State Street Corp now owns 26,669,576 shares of the company's stock valued at $2,195,973,000 after acquiring an additional 246,542 shares during the period. Geode Capital Management LLC boosted its holdings in Sysco by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 12,728,692 shares of the company's stock valued at $934,391,000 after acquiring an additional 131,659 shares during the period. Finally, Norges Bank acquired a new position in Sysco in the 4th quarter valued at about $542,780,000. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Sysco Stock Performance

Shares of Sysco stock opened at $82.58 on Thursday. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62. Sysco Corporation has a 52 week low of $68.19 and a 52 week high of $91.85. The firm's 50 day moving average is $82.48 and its two-hundred day moving average is $80.62. The firm has a market capitalization of $39.53 billion, a P/E ratio of 22.56, a P/E/G ratio of 2.81 and a beta of 0.64.

Sysco (NYSE:SYY - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.02. The business had revenue of $22.12 billion during the quarter, compared to analysts' expectations of $21.95 billion. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The company's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.48 EPS. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. Research analysts forecast that Sysco Corporation will post 5.1 EPS for the current fiscal year.

Analyst Ratings Changes

SYY has been the topic of a number of recent research reports. UBS Group boosted their price target on shares of Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Sanford C. Bernstein dropped their price objective on shares of Sysco from $90.00 to $85.00 and set a "market perform" rating for the company in a report on Wednesday, April 29th. Morgan Stanley upped their target price on shares of Sysco from $84.00 to $88.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 16th. Citigroup raised their price target on shares of Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Finally, Barclays dropped their price target on shares of Sysco from $92.00 to $86.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Eight equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $89.50.

Insiders Place Their Bets

In other news, Director John M. Hinshaw bought 13,304 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were acquired at an average price of $75.17 per share, for a total transaction of $1,000,061.68. Following the completion of the transaction, the director owned 40,200 shares of the company's stock, valued at approximately $3,021,834. This trade represents a 49.46% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Ronald L. Phillips sold 367 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $83.39, for a total value of $30,604.13. Following the completion of the sale, the executive vice president directly owned 38,650 shares of the company's stock, valued at $3,223,023.50. The trade was a 0.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. 0.56% of the stock is owned by 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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