Goldman Sachs Group Inc. Raises Holdings in Sysco Corporation $SYY

Key Points

• Goldman Sachs increased its Sysco stake by 45% in the fourth quarter, ending with 5.65 million shares worth about $416.5 million.
• Sysco also saw continued interest from other institutional investors, and hedge funds and other institutions now own 83.41% of the company.
• Analysts remain mixed on the stock: the consensus rating is Moderate Buy with an average target price of $88.15, while Sysco recently reported slightly missed earnings and revenue but raised its quarterly dividend to $0.55 per share.

Goldman Sachs Group Inc. lifted its stake in Sysco Corporation (NYSE:SYY - Free Report) by 45.0% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 5,651,682 shares of the company's stock after buying an additional 1,754,306 shares during the quarter. Goldman Sachs Group Inc. owned approximately 1.18% of Sysco worth $416,472,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of SYY. Intech Investment Management LLC boosted its position in Sysco by 53.1% during the first quarter. Intech Investment Management LLC now owns 22,310 shares of the company's stock worth $1,674,000 after purchasing an additional 7,742 shares in the last quarter. Schnieders Capital Management LLC. boosted its position in Sysco by 24.1% during the second quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company's stock worth $781,000 after purchasing an additional 2,000 shares in the last quarter. NewEdge Advisors LLC boosted its position in Sysco by 62.4% during the second quarter. NewEdge Advisors LLC now owns 35,447 shares of the company's stock worth $2,685,000 after purchasing an additional 13,616 shares in the last quarter. Sei Investments Co. boosted its position in Sysco by 14.2% during the second quarter. Sei Investments Co. now owns 344,504 shares of the company's stock worth $26,092,000 after purchasing an additional 42,903 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its position in Sysco by 0.8% during the second quarter. Treasurer of the State of North Carolina now owns 226,648 shares of the company's stock worth $17,166,000 after purchasing an additional 1,710 shares in the last quarter. Hedge funds and other institutional investors own 83.41% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on SYY shares. Deutsche Bank Aktiengesellschaft downgraded Sysco from a "buy" rating to a "hold" rating and set a $84.00 price target on the stock. in a research report on Tuesday, April 28th. Citigroup increased their price target on Sysco from $78.00 to $80.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Barclays lowered their price target on Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. Wells Fargo & Company increased their price target on Sysco from $92.00 to $100.00 and gave the stock an "overweight" rating in a research report on Thursday, February 19th. Finally, Guggenheim lowered their price target on Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Nine equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $88.15.

Insider Buying and Selling at Sysco

In other news, Director John M. Hinshaw bought 13,304 shares of the firm'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 directly owned 40,200 shares in the company, valued at $3,021,834. The trade was a 49.46% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.56% of the stock is currently owned by company insiders.

Sysco Stock Performance

NYSE SYY opened at $74.31 on Friday. The company has a market cap of $35.53 billion, a PE ratio of 20.58, a price-to-earnings-growth ratio of 3.07 and a beta of 0.65. The stock's 50 day simple moving average is $74.58 and its 200-day simple moving average is $78.11. Sysco Corporation has a 1-year low of $68.19 and a 1-year high of $91.85. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80.

Sysco (NYSE:SYY - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported $0.94 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.01). The firm had revenue of $20.52 billion during the quarter, compared to analysts' expectations of $20.56 billion. Sysco had a net margin of 2.08% and a return on equity of 103.57%. The business's revenue was up 4.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.96 EPS. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. As a group, equities research analysts anticipate that Sysco Corporation will post 4.59 EPS for the current fiscal year.

Sysco Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Thursday, July 2nd will be given a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 3.0%. This is a boost from Sysco's previous quarterly dividend of $0.54. The ex-dividend date is Thursday, July 2nd. Sysco's dividend payout ratio (DPR) is 59.83%.

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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