Hsbc Holdings PLC Makes New Investment in Sysco Corporation $SYY

Key Points

• HSBC Holdings acquired 1,050,934 Sysco shares during the second quarter, valued at approximately $87.8 million and representing about 0.22% of the company. Institutional investors collectively own 83.41% of Sysco.
• Sysco reported quarterly EPS of $1.53, exceeding estimates by $0.02, while revenue rose 4.7% year over year to $22.12 billion. Analysts have an overall “Moderate Buy” rating with an average price target of $89.50.
• Sysco declared a quarterly dividend of $0.55 per share, or $2.20 annualized, yielding approximately 2.6%. Recent analyst views were mixed, including upgrades, downgrades, and neutral ratings.

Hsbc Holdings PLC acquired a new position in shares of Sysco Corporation (NYSE:SYY - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 1,050,934 shares of the company's stock, valued at approximately $87,768,000. Hsbc Holdings PLC owned approximately 0.22% of Sysco as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. Lloyd Advisory Services LLC. acquired a new position in Sysco in the fourth quarter valued at approximately $25,000. Motiv8 Investments LLC purchased a new position in Sysco in the fourth quarter valued at approximately $25,000. Sunbelt Securities Inc. raised its holdings in 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 stake in Sysco during the fourth quarter worth approximately $27,000. Finally, Bard Associates Inc. purchased a new stake in shares of Sysco during the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 83.41% of the company's stock.

Insider Buying and Selling at Sysco

In other news, EVP Ronald L. Phillips sold 506 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $84.09, for a total transaction of $42,549.54. Following the completion of the sale, the executive vice president owned 36,313 shares in the company, valued at approximately $3,053,560.17. This represents a 1.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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. Insiders have sold a total of 14,508 shares of company stock worth $1,215,250 in the last three months. 0.56% of the stock is currently owned by corporate insiders.

Sysco Stock Performance

Shares of SYY opened at $83.28 on Thursday. The company's 50 day simple moving average is $82.91 and its 200-day simple moving average is $80.61. The firm has a market cap of $39.90 billion, a PE ratio of 22.75, a price-to-earnings-growth ratio of 2.85 and a beta of 0.64. Sysco Corporation has a 12-month low of $68.19 and a 12-month high of $91.85. The company has a current ratio of 1.28, a quick ratio of 0.77 and a debt-to-equity ratio of 4.62.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, beating the consensus estimate of $1.51 by $0.02. The firm had revenue of $22.12 billion during the quarter, compared to the consensus estimate of $21.95 billion. Sysco had a net margin of 2.08% and a return on equity of 95.05%. Sysco's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $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. As a group, equities analysts predict that Sysco Corporation will post 5.12 EPS for the current year.

Sysco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd will be issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, October 2nd. Sysco's dividend payout ratio is presently 60.11%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on SYY. Melius Research cut shares of Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. Wall Street Zen cut shares of Sysco from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Citigroup upped their price objective on shares of Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. Piper Sandler raised their price objective on Sysco from $77.00 to $84.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Finally, Weiss Ratings upgraded Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 19th. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $89.50.

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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