Heartland Advisors Inc. Takes Position in Sysco Corporation $SYY

Key Points

• Heartland Advisors initiated a Sysco position in the second quarter, purchasing 139,290 shares valued at approximately $11.6 million. Institutional investors and hedge funds collectively own 83.41% of SYY.
• Sysco exceeded quarterly expectations, reporting $1.53 in EPS and $22.12 billion in revenue, up 4.7% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $89.50.
• The company declared a quarterly dividend of $0.55 per share, representing a 2.6% yield, while its AI initiatives and Jetro Restaurant Depot acquisition could support growth but carry financing, regulatory, integration, and execution risks.

Heartland Advisors Inc. bought a new stake in Sysco Corporation (NYSE:SYY - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 139,290 shares of the company's stock, valued at approximately $11,642,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Lloyd Advisory Services LLC. acquired a new stake in Sysco during the fourth quarter worth about $25,000. Motiv8 Investments LLC purchased a new stake in Sysco during the 4th quarter worth $25,000. Sunbelt Securities Inc. lifted its stake in shares of Sysco by 87.6% during the first quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock worth $26,000 after purchasing an additional 170 shares in the last quarter. Torren Management LLC acquired a new position in shares of Sysco during the fourth quarter worth about $27,000. Finally, Bard Associates Inc. acquired a new stake in shares of Sysco in the fourth quarter valued at about $27,000. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms recently commented on SYY. Barclays reduced 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. Sanford C. Bernstein decreased their target price on shares of Sysco from $90.00 to $85.00 and set a "market perform" rating for the company in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft downgraded shares of Sysco from a "buy" rating to a "hold" rating and set a $84.00 price target on the stock. in a research note on Tuesday, April 28th. Piper Sandler upped their price objective on shares of Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Finally, Weiss Ratings upgraded Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $89.50.

Trending Headlines about Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco appointed Jason Murray, a former Amazon supply-chain technology executive, and Tom Ondrof, a former Aramark CFO, to its board effective September 1. Their expertise in artificial intelligence, logistics, foodservice, finance, and mergers could strengthen execution and governance. Sysco Announces Strategic Board Appointments and AI Transformation Initiatives
• Positive Sentiment: The company reiterated fiscal 2027 targets of 6%–7% revenue growth and 9%–11% adjusted EPS growth, including a planned $100 million AI-enabled cost-savings program. Sysco is also upgrading its technology committee to oversee the broader AI transformation. Sysco Gains After Highlighting Board Changes and AI Initiatives
• Positive Sentiment: D.E. Shaw reportedly owns more than $1 billion of Sysco stock and supports the AI strategy and pending Jetro Restaurant Depot acquisition. Its expected participation in the transaction’s capital raise signals institutional confidence in Sysco’s long-term plans. D.E. Shaw Owns More Than $1 Billion Stake in Sysco
• Positive Sentiment: Sysco declared a quarterly dividend of $0.55 per share, payable October 23 to shareholders of record October 2. The maintained payout provides income support and indicates continued confidence in cash generation. Sysco Declares Quarterly Dividend Payment
• Neutral Sentiment: Persistent food inflation and uncertainty around tariffs remain industry-wide considerations. Higher food costs can lift Sysco’s reported sales, but may pressure restaurant demand, customer margins, and Sysco’s profitability if costs cannot be passed through. Trump's 90-Day Inflation Band-Aid
• Negative Sentiment: The Jetro Restaurant Depot acquisition still carries regulatory, financing, integration, and execution risks. Any delays, dilution, or failure to deliver expected synergies could weigh on SYY despite the positive strategic narrative.

Sysco Price Performance

SYY opened at $84.04 on Friday. The company has a market capitalization of $40.23 billion, a P/E ratio of 22.96, a PEG ratio of 2.84 and a beta of 0.64. The company has a 50-day moving average of $82.65 and a 200-day moving average of $80.64. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. Sysco Corporation has a 1-year low of $68.19 and a 1-year high of $91.85.

Sysco (NYSE:SYY - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.51 by $0.02. The business had revenue of $22.12 billion for 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 quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter last year, the company posted $1.48 earnings per share. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. Equities analysts expect that Sysco Corporation will post 5.1 EPS for the current fiscal year.

Sysco Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 2nd will be given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, October 2nd. Sysco's dividend payout ratio is currently 60.11%.

Insider Buying and Selling at Sysco

In other news, EVP Ronald L. Phillips sold 6,285 shares of the firm's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $83.94, for a total value of $527,562.90. Following the transaction, the executive vice president directly owned 39,970 shares in the company, valued at approximately $3,355,081.80. This trade represents a 13.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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. Also, Director John M. Hinshaw purchased 13,304 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was acquired at an average cost of $75.17 per share, with a total value of $1,000,061.68. Following the completion of the acquisition, the director directly owned 40,200 shares in the company, valued at approximately $3,021,834. This trade represents a 49.46% increase in their position. The disclosure for this purchase is available in the SEC filing. 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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