Ethic Inc. Lowers Stake in Sysco Corporation $SYY

Key Points

• Ethic Inc. reduced its stake in Sysco Corporation by 4.2%, holding 120,031 shares valued at $9.05 million after selling 5,294 shares.
• Insider transactions showed notable sell-offs, with EVP Ronald L. Phillips selling 6,286 shares for $509,166 and Greg D. Bertrand selling 40,000 shares for $3.2 million.
• Analysts have mixed ratings on Sysco's stock, with target prices ranging from $77.00 to $90.00, indicating a consensus rating of "Moderate Buy."

Ethic Inc. trimmed its stake in Sysco Corporation (NYSE:SYY - Free Report) by 4.2% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 120,031 shares of the company's stock after selling 5,294 shares during the quarter. Ethic Inc.'s holdings in Sysco were worth $9,053,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in SYY. Rialto Wealth Management LLC boosted 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 acquiring an additional 217 shares during the last quarter. Parvin Asset Management LLC purchased a new position in Sysco in the fourth quarter valued at about $29,000. Golden State Wealth Management LLC boosted 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 acquiring an additional 140 shares during the last quarter. N.E.W. Advisory Services LLC purchased a new position in Sysco in the first quarter valued at about $33,000. Finally, Capital A Wealth Management LLC purchased a new position in Sysco in the fourth quarter valued at about $34,000. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Sysco Price Performance

NYSE SYY traded down $1.17 on Thursday, hitting $79.81. The stock had a trading volume of 518,307 shares, compared to its average volume of 3,315,584. Sysco Corporation has a 52-week low of $67.12 and a 52-week high of $82.64. 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 company has a market capitalization of $38.69 billion, a price-to-earnings ratio of 21.38, a price-to-earnings-growth ratio of 2.46 and a beta of 0.83. The firm has a 50-day moving average of $77.93 and a 200-day moving average of $74.27.

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

Sysco Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 3rd will be paid a $0.54 dividend. This represents a $2.16 annualized dividend and a yield of 2.7%. Sysco's dividend payout ratio is presently 57.91%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on SYY. Wells Fargo & Company set a $88.00 price target on shares of Sysco and gave the company an "overweight" rating in a research note on Tuesday, July 29th. BMO Capital Markets cut their price objective on shares of Sysco from $82.00 to $77.00 and set an "outperform" rating for the company in a report on Wednesday, April 30th. UBS Group set a $90.00 price objective on shares of Sysco in a report on Wednesday, July 30th. Wall Street Zen downgraded shares of Sysco from a "buy" rating to a "hold" rating in a report on Sunday, July 13th. Finally, Bank of America raised their price objective on shares of Sysco from $81.00 to $93.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Ten research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $85.69.

Insider Activity at Sysco

In other Sysco news, EVP Ronald L. Phillips sold 6,286 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $81.00, for a total value of $509,166.00. Following the sale, the executive vice president directly owned 34,404 shares in the company, valued at $2,786,724. This represents a 15.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Greg D. Bertrand sold 40,000 shares of the 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 sale, the executive vice president owned 56,304 shares in the company, valued at $4,504,320. This represents a 41.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 84,026 shares of company stock worth $6,766,059 over the last quarter. Corporate insiders own 0.54% of the company's stock.

Sysco Company Profile

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.