Geode Capital Management LLC Raises Stock Position in Sysco Corporation $SYY

Key Points

• Geode Capital Management increased its Sysco stake by 1.0% in the fourth quarter, bringing its holdings to 12.7 million shares valued at about $934.4 million.
• Sysco reported quarterly earnings of $0.94 per share, just below analyst expectations, while revenue came in at $20.52 billion and rose 4.7% year over year.
• The company raised its quarterly dividend to $0.55 per share from $0.54, implying an annualized dividend of $2.20 and a yield of about 2.9%.

Geode Capital Management LLC raised its holdings in shares of Sysco Corporation (NYSE:SYY - Free Report) by 1.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 12,728,692 shares of the company's stock after purchasing an additional 131,659 shares during the period. Geode Capital Management LLC owned 2.66% of Sysco worth $934,391,000 at the end of the most recent quarter.

Other large investors have also made changes to their positions in the company. Teacher Retirement System of Texas grew its stake in shares of Sysco by 8.0% during the fourth quarter. Teacher Retirement System of Texas now owns 370,571 shares of the company's stock worth $27,307,000 after acquiring an additional 27,510 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its stake in shares of Sysco by 9.5% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 412,423 shares of the company's stock worth $30,445,000 after acquiring an additional 35,647 shares during the last quarter. Nicholas Company Inc. purchased a new stake in shares of Sysco during the fourth quarter worth about $2,278,000. AE Wealth Management LLC grew its stake in shares of Sysco by 320.9% during the third quarter. AE Wealth Management LLC now owns 79,589 shares of the company's stock worth $6,553,000 after acquiring an additional 60,680 shares during the last quarter. Finally, Krilogy Financial LLC grew its stake in shares of Sysco by 65.6% during the third quarter. Krilogy Financial LLC now owns 42,435 shares of the company's stock worth $3,494,000 after acquiring an additional 16,807 shares during the last quarter. 83.41% of the stock is owned by institutional investors and hedge funds.

Sysco Stock Up 0.1%

Shares of SYY opened at $75.98 on Friday. Sysco Corporation has a 52 week low of $68.19 and a 52 week high of $91.85. The company has a quick ratio of 0.80, a current ratio of 1.33 and a debt-to-equity ratio of 5.58. The company has a market capitalization of $36.33 billion, a price-to-earnings ratio of 21.05, a PEG ratio of 3.10 and a beta of 0.66. The stock's 50-day moving average price is $75.17 and its 200-day moving average price is $78.10.

Sysco (NYSE:SYY - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $0.94 EPS for the quarter, missing analysts' consensus estimates of $0.95 by ($0.01). Sysco had a return on equity of 103.57% and a net margin of 2.08%.The company had revenue of $20.52 billion during the quarter, compared to analysts' expectations of $20.56 billion. During the same quarter in the previous year, the company earned $0.96 EPS. The firm's quarterly revenue was up 4.7% compared to the same quarter last year. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. On average, sell-side analysts predict that Sysco Corporation will post 4.59 EPS for the current year.

Sysco Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Thursday, July 2nd will be given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.9%. This is an increase from Sysco's previous quarterly dividend of $0.54. The ex-dividend date is Thursday, July 2nd. Sysco's payout ratio is currently 59.83%.

Insider Buying and Selling at Sysco

In other news, Director John M. Hinshaw acquired 13,304 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was 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 in the company, valued at approximately $3,021,834. The trade was a 49.46% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.56% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on SYY. Sanford C. Bernstein dropped their price target on Sysco from $90.00 to $85.00 and set a "market perform" rating on the stock in a research note on Wednesday, April 29th. Guggenheim lowered their price objective on shares of Sysco from $95.00 to $90.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Weiss Ratings cut Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, March 30th. Deutsche Bank Aktiengesellschaft lowered shares of Sysco from a "buy" rating to a "hold" rating and set a $84.00 price objective on the stock. in a research note on Tuesday, April 28th. Finally, Wall Street Zen lowered shares of Sysco from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Nine research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $88.15.

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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